Chapter 11 bankruptcy

Cultural  

1. A provision of the U.S. bankruptcy law which enables a failing firm to apply to the courts for protection against all creditors while it is reorganized to pay its debts. This provision enables a firm to avoid being closed down by any single creditor and gives investors a chance to decide whether the firm can again be made profitable. At the same time, it gives dishonest management the opportunity to loot the firm's assets while the case is before the courts.

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Example Sentences

Chapter 11 bankruptcy filings in the U.S. were up 42% in April from a year prior, and Subchapter V small-business filings rose 46%.

From MarketWatch • May 21, 2026

Purdue first filed for Chapter 11 bankruptcy in 2019 as the company faced a surge in opioid-related lawsuits.

From The Wall Street Journal • Apr. 28, 2026

Spirit, known for its cheap, no-frills flights and bright yellow planes, filed for Chapter 11 bankruptcy a second time last August after multiple years of deep and growing losses.

From Barron's • Apr. 22, 2026

Spirit Aviation Holdings shares soared 150% to $1.50 on Wednesday, following its second Chapter 11 bankruptcy filing last August.

From Barron's • Apr. 22, 2026

Saks Global, which owns Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection in January, citing overwhelming debt.

From Los Angeles Times • Mar. 23, 2026