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True or False: When reorganization plans are created, creditors prefer an extension because they expect to...

True or False: When reorganization plans are created, creditors prefer an extension because they expect to receive full payment eventually.

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False because when reorganization plans are created, creditors think whatever they can relise right now to be released.Since there is no assurance or guarantee with respect to future payments so they want whatever they are receiving right now.There are very less chances of getting full payment eventually because it will be only made if some balance is left there, after settlement of all payments and we know that reorganization plans are created when there is financial crunch.

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