Bank A has debt that is backed with secured assets of Company B,who is currently liquidating its assets in bankruptcy.If Bank A is owed $10,000,000 and the liquidation of the assets will provide $8,000,000,then what happens to the remaining $2,000,000?
A) the $2,000,000 will be lost in the bankruptcy process
B) the $2,000,000 will have to be repaid through the automatic securitization of other assets
C) the $2,000,000 will become an unsecured or general credit amount in the liquidation process.
D) none of the above.
Correct Answer:
Verified
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