Solved Questions

From the Headlines—Necton: Describe the business model turnaround Necton undertook. Comment on what you think would have been the challenges and your perceptions how the new business model succeeded.

What is the purpose of Chapter 7 of the U.S. Bankruptcy Code? What are some of the characteristics of ventures that use Chapter 7 instead of private liquidation?

Describe the absolute priority rule.

Briefly define the following terms: cram-down procedure, debtor-in-possession financing, and prepackaged bankruptcy.

Briefly describe the common pool and holdout problems that often make it necessary for a venture to enter into a court-supervised reorganization.