A plan of reorganization formulated under Chapter 11 must be submitted to the creditors for acceptance and to the court for confirmation. Which of the following is correct?

Answer (A) is correct. Confirmation is the court’s approval of the plan after notice and a hearing. Confirmation makes the plan binding on the creditors, equity security holders, and debtor, whether or not they accepted the plan. It also operates as a discharge of unprotected debts, except for those claims previously denied discharge in a Chapter 7 case, and vests the estate property in the debtor. Confirmation is contingent upon the plan’s feasibility, the good faith in which it was proposed, and the provision for cash payment of certain allowed claims, such as administration expenses.