In the Matter of Kmart Corp., where some creditors objected to the bankruptcy judge decision that "critical vendors" were to be paid first so that the store might stay in business, the appeals court held that:
A) the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors and so the critical-vendors order could stand
B) the record did not show the prospect or benefit to the other creditors, which would be necessary to allow the preferential payment of one class of creditors and so the critical-vendors order could not stand
C) the record did not show the prospect or benefit to the other creditors, which would be necessary to allow the preferential payment of one class of creditors but the critical-vendors order could stand anyway
D) the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors, but the critical-vendors order could not stand due to the special circumstances of the case
E) the creditors who objected were unreliable and so should not be paid
Correct Answer:
Verified
Q512: The surplus that the creditors hope to
Q513: In the Matter of Kmart Corp., where
Q514: An advantage of a well-planned Chapter 11
Q515: Most companies that file Chapter 11 bankruptcies
Q516: Every year approximately _ businesses use a
Q518: Refer to Fact Pattern 12-1. When Fidelity
Q519: The difference between the value of a
Q520: Brandon files for a Chapter 11 bankruptcy
Q521: Refer to Fact Pattern 12-1. Suppose that
Q522: In Summers Group v. Tempe Mechanical, Summers
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents