Some of the Key Reasons Why a Firm Would Choose

Some of the key reasons why a firm would choose a formal bankruptcy over a private workout include all the following except the:

A) issuance of debtor-in-possession debt.
B) tax treatment of tax loss carryforwards.
C) tax treatment of debt forgiveness.
D) ability to issue new debt that is senior to all prior debts.
E) higher priority given to the existing stockholders.