(Solved) : X Corporation Is A Debtor In A Reorganization Proceeding Under . . .

X Corporation is a debtor in a reorganization proceeding under Chapter 11 of the Bankruptcy Code. By fair and proper valuation, its assets are worth $100,000. The indebtedness of the corporation is $105,000, and it has outstanding preferred stock of par value of $20,000 and common stock of par value of $75,000. The plan of reorganization submitted by the trustees would eliminate the common shareholders and would issue new bonds of the face amount of $5,000 to the creditors and new common stock in the ratio of 84 percent to the creditors and 16 percent to the preferred shareholders. Should this plan be confirmed?

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