1. Law and Economics-Charles W. Upton The Plan of Reorganization

3. Secured Creditors

4. The Plan of Reorganization Secured Creditors The secured creditors get $100,000, leaving $110,000 for the others

5. The Plan of Reorganization Acme Venture Capital Unsecured Creditors? Stand in line

6. The Plan of Reorganization Acme Venture Capital Unsecured Creditors? Preferred Shareholders? 0

7. The Plan of Reorganization Acme Venture Capital Unsecured Creditors? Preferred Shareholders? Secured Creditors?

8. The Plan of Reorganization Acme Venture Capital Unsecured Creditors? Preferred Shareholders? Secured Creditors? Probably. If so they should get the rest. But…

9. The Plan of Reorganization Johnny In theory Johnny gets zero. But…

10. The Plan of Reorganization Johnny In theory Johnny gets zero. But… Keep Johnny motivated to manage the restaurant

11. The Plan of Reorganization Johnny In theory Johnny gets zero. But… Keep Johnny motivated to manage the restaurant Nuisance value as shareholder

12. The Plan of Reorganization My Guess

13. The Plan of Reorganization My Guess

14. The Plan of Reorganization My Guess

15. The Plan of Reorganization End ©2004 Charles W. Upton