Reorganization proceeding under chapter

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X 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 preferred stock of par value of $20,000 and common stock of par value of $75,000. The plan of reorganization submitted by the trustees would eliminate the common shareholders and would issue new bonds of 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?

Reference no: EM132180424

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