INSOLVENCY—LIQUIDATION AND REORGANIZATION
Describe the five priority categories of unsecured claims and list the order in which they are settled.
Distinguish between a voluntary and involuntary bankruptcy petition.
Distinguish among fully secured, partially secured, and unsecured claims of creditors.
Describe contractual agreements that the debtor and its creditors may enter into outside of formal bankruptcy proceedings to resolve the debtor's insolvent position.
Describe the ways debt may be restructured in a reorganization.
“It's bankrupt. Its reputation is in tatters. And it has been forced from its plush ...