1. Suppose that RG defaults on both its loans. Please discusswhich lender will have...

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Accounting

1. Suppose that RG defaults on both its loans. Please discusswhich lender will have priority over RG's equipment, accountspayable, and inventory when it comes time to repossess and sell thecollateral?
2. Suppose that RG files for Chapter 11 bankruptcy protectionand the automatic stay. In response, CF filed a lawsuit for breachof the promissory note in which it demanded immediate re-payment infull or foreclosure on the collateral under the security agreement.Will CF succeed in prosecuting its lawsuit? Defend your answer bydescribing the likely outcome of the lawsuit.
3. Briefly describe how each creditor (lender) will beclassified in the "reorganization plan" as either a secured ornon-secured creditor and discuss which creditor you suspect will bein a superior position for securing the repayment, partial or infull, of the debt in bankruptcy?

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The details of the loans are missing However through this write up you will be able to get your answer The order of Priority among creditors 1 If Inventory rule applies buyer of the goods in the ordinary course of business 2 If there is a statutory lien mechanics lien holder of the See Answer

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In: Accounting1. Suppose that RG defaults on both its loans. Please discusswhich lender will have priority...1. Suppose that RG defaults on both its loans. Please discusswhich lender will have priority over RG's equipment, accountspayable, and inventory when it comes time to repossess and sell thecollateral?2. Suppose that RG files for Chapter 11 bankruptcy protectionand the automatic stay. In response, CF filed a lawsuit for breachof the promissory note in which it demanded immediate re-payment infull or foreclosure on the collateral under the security agreement.Will CF succeed in prosecuting its lawsuit? Defend your answer bydescribing the likely outcome of the lawsuit.3. Briefly describe how each creditor (lender) will beclassified in the "reorganization plan" as either a secured ornon-secured creditor and discuss which creditor you suspect will bein a superior position for securing the repayment, partial or infull, of the debt in bankruptcy?