Skip to content

FRM Part II · FRM Exam Part II · Distress Symptoms and Remedies

In a Chapter 11 case, a plan of reorganization is being voted on by classes of creditors. Under the Bankruptcy Code, a class of claims is deemed to have accepted the plan when votes in favor represent at least:

A class accepts a Chapter 11 plan when holders of at least two-thirds in dollar amount and more than half in number of the claims that actually vote approve it. Unanimity is not required, and non-voting claims are excluded from the calculation.

  1. ATwo-thirds in dollar amount and more than one-half in number of the claims votingCorrect
  2. BMore than one-half in dollar amount and two-thirds in number of claims voting
  3. CUnanimous approval of all claim holders in the class
  4. DThree-quarters in dollar amount of all claims in the class, whether or not they vote

Explanation

Class acceptance requires at least two-thirds in amount and more than one-half in number of the allowed claims that actually vote. The reversed thresholds are wrong, unanimity is not required, and the calculation is based on voting claims, not all claims.

Did you get it right without looking?

One question tells you little. A timed set on Distress Symptoms and Remedies shows your real accuracy, how long you take and where you lose marks.

Practise Distress Symptoms and RemediesFree diagnostic mock

More Distress Symptoms and Remedies questions