Answer (D) is correct . A Chapter 11 reorganization allows a distressed business enterprise to restructure its finances. The primary purpose of the restructuring is usually the continuation of the business. Reorganization is a process of negotiation whereby the debtor firm and its creditors develop a plan for the adjustment and discharge of debts.
Answer (A) is incorrect because Partnerships, corporations, and any person who may be a debtor under Chapter 7 (except stock and commodity brokers) are eligible debtors under Chapter 11.
Answer (B) is incorrect because A reorganization may be commenced by a voluntary or involuntary petition.
Answer (C) is incorrect because The debtor need not be insolvent.
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