Case Problem:
X Corporation is a debtor in a reorganization proceeding 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 issue new bonds of the face amount of $5,000 to the creditors and common stock in the ratio of 84 percent to the creditors and 16 percent to the preferred shareholders. Should this plan be confirmed?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.