Problem: Name two firms that have recently declared bankruptcy (within 5 years) and for each firm address the following questions:
Q1. Why did the firm declare or is declaring bankruptcy?
Q2. Is the firm declaring under Chapter 7 or Chapter 11 of the Federal Bankruptcy Reform Act?
Q3. Has a plan been established to reorganize or liquidate? Describe the plan in general terms.
Q4. Do you think the firm will succeed in getting out of bankruptcy and why?
Q5. Who will be adversely affected if the firm shuts down for good? Will anyone benefit? Should the Federal Government bail them out?