Answer (D) is correct . A Chapter 11 plan must designate classes of creditors’ claims and owners’ interests; state the treatment to be given each class; indicate which classes will or will not be impaired; allow for equal treatment of the members within a class unless they agree otherwise; and provide for an adequate method of payment. If the debtor is a corporation, the plan must also protect voting rights, state that no nonvoting stock will be issued, and require that selection of officers and directors be effected in a manner to protect the parties in interest.
Answer (A) is incorrect because Only the debtor may file a plan within 120 days after entry of the order for relief. If the debtor fails to file or if the creditors do not approve of the plan within 180?days of the entry of the order for relief, any party in interest (including the trustee) may file a plan.
Answer (B) is incorrect because Only the debtor may file a plan within 120 days after entry of the order for relief. If the debtor fails to file or if the creditors do not approve of the plan within 180 days of the entry of the order for relief, any party in interest (including the trustee) may file a plan.
Answer (C) is incorrect because The plan must be fair and equitable but all classes need not be treated the same. However, no party may receive less than the amount that would have been distributed in a liquidation.
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