Welcome to EssayHotline!

We take care of your tight deadline essay for you! Place your order today and enjoy convenience.

Should the court confirm the plan? If not, how must the plan be modified or what other conditions must be satisfied?

ASSIGNMENT

1.Ross Corporation is a debtor in a reorganization proceeding under Chapter 11 of the Bankruptcy Code. By fair and proper valuation, its assets are worth $100,000. The indebtedness of the corporation is $105,000, and it has outstanding $100 par value preferred stock in the amount of $20,000 and $30 par value common stock in the amount of $75,000. The plan of reorganization submitted by the trustees would give nothing to the common shareholders and would issue new bonds in the face amount of $5,000 to the creditors and new common stock in the ratio of 84 percent to the creditors and 16 percent to the preferred shareholders. Should this plan be confirmed? Explain.

2. Alex is a wage earner with a regular income. He has unsecured debts of $42,000 and secured debts owing to Betty, Connie, David, and Eunice totaling $120,000. Eunice’s debt is secured only by a mortgage on Alex’s house. Alex files a petition under Chapter 13 and a plan providing payment as follows: (a) 60 percent of all taxes owed; (b) 35 percent of all unsecured debts; and (c) $100,000 in total to Betty, Connie, David, and Eunice. Should the court confirm the plan? If not, how must the plan be modified or what other conditions must be satisfied?

3. John Bunker has assets of $130,000 and liabilities of $185,000 owed to nine creditors. Nonetheless, his cash flow is positive, and he is making payment on all of his obligations as they become due. I. M. Flintheart, who is owed $22,000 by Bunker, files an involuntary petition in bankruptcy under Chapter 7 against Bunker. Bunker contests the petition. What result? Explain.

4. Karen has filed a voluntary petition for a Chapter 7 proceeding. The total value of her estate is $35,000. Ben, who is owed $18,000, has a security interest in property valued at $12,000. Lauren has an unsecured claim of $9,000, which is entitled to a priority of $2,000. The United States has a claim for income taxes of $7,000. Steve has an unsecured claim of $10,000 that was filed on time. Sarah has an unsecured claim of $17,000 that was filed on time. Wally has a claim of $14,000 that he filed late, even though he was aware of the bankruptcy proceedings. What should each of the creditors receive in a distribution under Chapter 7?

5. Landmark at Plaza Park, Ltd., filed a plan of reorganization under Chapter 11 of the Bankruptcy Code. Land- mark is a limited partnership whose only substantial asset is a two-hundred-unit garden apartment complex. City Federal holds the first mortgage on the property in the face amount of $2,250,000. The mortgage is due and payable six years from now. Landmark has proposed a plan of reorganization under which the property now in possession of City Federal would be returned. Landmark will then deliver a nonrecourse note, payable in three years, in the face amount of $2,705,820.31 to City Federal in substitution of all of the partnership’s existing liabilities. On the sixteenth month through the thirty-sixth month after the effective date of the plan, Landmark will make monthly interest payments computed on a property value of $2,260,000 at a rate 3 percent above the original mortgage rate but 2.5 percent below the market rate for loans of similar risk. Finally, the note will be secured by the existing mortgage. Landmark’s theory is that the note will be paid off at the end of thirty-six months by a combination of refinancing and accumulation of cash from the project. The key is Landmark’s proposal to obtain a new first mortgage in three years in the face amount of $2,400,000. City Federal is a first mortgagee without recourse that has been collecting rents pursuant to a rent assignment agreement since the default on the mortgage eleven months ago. City Federal is impaired by the plan and has rejected the plan. May it complete its foreclosure action? Explain.

© 2024 EssayHotline.com. All Rights Reserved. | Disclaimer: for assistance purposes only. These custom papers should be used with proper reference.