Classify the given voluntary settlements as an extension

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For a firm with outstanding debt of $200 million, classify each of the following voluntary settlements as an extension, a composition, or a combination of the two.

a. Paying a group of creditors in full in three periodic installments and paying the remaining creditors 70 cents on the dollar immediately.

b. Paying a group of creditors 60 cents on the dollar immediately and paying the remaining creditors 80 cents on the dollar in five periodic installments.

c. Paying all creditors 25 cents on the dollar.

Reference no: EM131315490

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