All stockholders of a corporation undergoing Chapter 11 bankruptcy reorganization must approve the plan of reorganization before it is confirmed by the bankruptcy court.

Question

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Under Chapter 11 bankruptcy reorganization, it is not required for all stockholders to approve the plan of reorganization. The plan can be confirmed by the bankruptcy court if it is accepted by certain classes of creditors and equity holders, as specified by the Bankruptcy Code, even over the objections of other classes.

All Stockholders of a Corporation Undergoing Chapter 11 Bankruptcy Reorganization