XYZ Inc. files for chapter 7 bankruptcy. It has many creditors. It owes $1.1 million to Citi Bank (it used its inventory as collateral), owes $2 million to Chase Bank (used its building as collateral), owes $2 million to Huntington Bank (used its receivables and inventory as collateral), owes employees $100,000 in back wages, owes $20,000 in unpaid accounting fees, owes customers who have put down deposits on future deliveries $45,000, owes $30,000 in unpaid utilities, owes $50,000 in back taxes, owes $2,800,000 to other unsecured creditors. Its inventory is sold, netting $1,100,000, its building is sold, netting $3 million, it has receivables of $200,000, and $1 million in other assets. Which of the following is true? A. The secured creditors will receive all of the assets.
B. The trustee will decide how the cash available to unsecured creditors is distributed.
C. Huntington Bank and Chase Bank will receive everything they are owed.
D. Chase Bank will receive everything it is owed.
E. Citi Bank will receive everything it is owed.