Chapter 11
Corporate debt reorganization
Chapter 11 is a section of U.S. bankruptcy law that allows businesses to reorganize their debts while continuing to operate.
Unlike liquidation, Chapter 11 lets a company restructure finances under court supervision, with the goal of emerging viable: The airline filed for Chapter 11 protection.
The term has become shorthand for corporate financial distress: They're headed for Chapter 11 if sales don't improve.
- debtorOne who owes
- insolvencyInability to pay debts
- creditorOne owed money
- cramdownJudicial override of creditor dissent
- defaultPreset standard option
trustee · receivership · restructuring · debt relief · failure · liabilities · court · financial distress · assets · filing · claims · business · collapse · too big to fail · American Airlines · discharge · corporate · sections
- debtdebt, creditor, owe, debtor, lender
- financial ruinbankrupt, bust, busted, broke, insolvent
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- dissolutionbreakup, breakdown, liquidation, wind down, disintegration
- organizational changemerger, acquisition, restructuring, reorganization, expansion
- bankruptcyinsolvency, discharge, liquidation, creditor, debtor
Chapter 11solvency
Capacity to pay debts
financial health · profitability · liquidity · financial stability · creditworthiness
Chapter 11IPO
First public stock offering
expansion · growth · acquisition · market dominance · record profits
chapter, chapters, chaptered, chaptering, subchapter, chapterhouse, chapter's