Obviously, the debtor doesn’t have sufficient ready funds to pay all creditors at the time of filing. Instead, an approved plan relies on future business earnings and profits to address creditor debts. The debt claims are prioritized with taxes owed being paid first. Secured claims will come next and unsecured debts follow third with partial payments.
- American Airlines’ Chapter 11 secret: a $30 million London townhome (thestar.com)
- Washington Mutual agrees to settlement (seattletimes.nwsource.com)
- WaMu files new reorganization plan, agrees to settle with some creditors (oregonlive.com)
- Knoxville coal company files bankruptcy; attracts Chinese investors (knoxnews.com)
- WaMu, Biggest Bank Failure In U.S. History, Reaches Settlement (huffingtonpost.com)
- Washington Mutual reaches settlement (sfgate.com)
- What level should bankruptcy petition thresholds be set at? (cleardebt.co.uk)