In ________, an assignment may be made by the creditors of an insolvent firm to a third party who then has the power to liquidate the firm's assets.
A) a voluntary private liquidation
B) a greenmail
C) an involuntary liquidation under Chapter Seven of the Bankruptcy Reform Act of 1978
D) a voluntary liquidation under Chapter Seven of the Bankruptcy Reform Act of 1978

Question

Quizplus · Accepted Answer

In a voluntary private liquidation, creditors of an insolvent firm can assign the task of liquidating the firm's assets to a third party. This process allows for the orderly sale of assets outside of formal bankruptcy proceedings.

In ________, an Assignment May Be Made by the Creditors