Gidgits Galore supplies gidgits to a large retailer who decides to do an Out-of-Court Workout with its creditors in order to con
tinue its business operations. Gidgits Galore is an unsecured creditor. Gidgits Galore will prefer the Out-of-Court Workout to a Chapter 7 liquidation. False True
Gidgits Galore has borrowed $10,000 to buy new shelves to display its millennial version of the gidgit. The bank negotiated the use 1,000 gidgits as collateral and then filed a UCC-1 Financing Statement with the Register of Deeds where Gidgits Galore has its headquarters. The bank is an unsecured creditor.
