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.

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trustee · receivership · restructuring · debt relief · failure · liabilities · court · financial distress · assets · filing · claims · business · collapse · too big to fail · American Airlines · discharge · corporate · sections

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