In Making a Proposal Under the Bankruptcy and Insolvency Act

Multiple Choice

In making a proposal under the Bankruptcy and Insolvency Act, a composition would be most attractive to a creditor where

A) the debtor is generally able to pay its debts as they come due.
B) the creditor will receive more if the debtor is permitted to continue to operate under the proposal, than if the debtor is forced into bankruptcy.
C) the debtor does not want to part with voting control over the company.
D) the debtor cannot be trusted to pay its debts.
E) the debtor has given a security interest to the creditor in assets that, if sold, would yield proceeds exceeding the amount of the debt.