Shippers Dispatch Corporation Orders Office Equipment from Office Outfitters, Inc

Essay

Shippers Dispatch Corporation orders office equipment from Office Outfitters, Inc. on credit. Shippers Dispatch takes out a loan from Capital Credit, Inc., subject to a security interest in Shippers Dispatch's building and equipment. Shippers Dispatch owes several other creditors for the purchase or supplies and raw materials. With debts of $1.1 million, Shippers Dispatch files a bankruptcy petition under Chapter 11. Discuss the Chapter 11 process and what role each of the creditors will play in that process.