Electro Inc

Multiple Choice

Electro Inc. was trying to avoid going bankrupt so it filed a Division 1 Proposal. The secured creditors voted 100% to accept Electro's proposal. When the unsecured creditors voted though only 50% of them voted to accept Electro's proposal. As a result

A) Electro can submit a new proposal
B) Electro can avoid bankruptcy because the secured creditors accepted its proposal
C) Electro can stay in business but the unsecured creditors must be paid off in full first
D) Electro will now automatically go bankrupt
E) the Trustee will have to negotiate a new proposal that all the unsecured creditors will agree to