Natasha runs a lingerie business that caters to a select crowd.Notwithstanding her valiant efforts at promotion,the lingerie business goes nowhere and she's left saddled with over $100 000 in debts.She would like to continue operating,at least for a while,and makes a proposal to creditors.She puts all creditors owed $1000 dollars or less in one class,puts her two large secured creditors in their own categories,and the preferred creditors in a third class.Is it likely that her proposal will succeed?
A) No,because Natasha is not allowed to classify all creditors.
B) No,because Natasha has too much debt to be able to make a proposal to creditors.
C) Yes,so long as the secured creditors are not secured against the same assets and are satisfied in the proposal,and her creditors do not object to the classification as unfair.
D) Yes,so long as all creditors are fully satisfied.
E) Yes,so long as Natasha promises that if the proposal does not work she will assign herself into bankruptcy.
Correct Answer:
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