Chapter 11

American  

Or Chapter Eleven,

noun

U.S. Law.

1. a section of the Bankruptcy Code that provides for the reorganization of an insolvent corporation under court supervision and can establish a schedule for the payment of debts and, in some cases, a new corporation that can continue to do business.

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chapter 11 British  

noun

1. the statute regarding the reorganization of a failing business empowering a court to allow the debtors to remain in control of the business to attempt to save it

   they are in chapter 11

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Etymology

Origin of chapter 11

C20: from chapter 11 of the Bankruptcy Reform Act (1978)

Example Sentences

The planned chapter 11 filing is expected to mark the highest-profile department-store bankruptcy since the Covid-19 pandemic.

From The Wall Street Journal

Bankruptcy Judge Scott Everett said that he’d “never seen a case” like the Chapter 11 filing Dr. Phil’s company was attempting.

From Los Angeles Times

Hourly rates for bankruptcy lawyers are topping $3,000, contributing to soaring chapter 11 costs that have prompted more companies to turn to faster out-of-court restructurings.

From The Wall Street Journal

The company faces a $100-million debt payment deadline at the end of December and is considering Chapter 11 bankruptcy as a last resort, Bloomberg said.

From Los Angeles Times

The company filed for Chapter 11 bankruptcy protection in September 2020.

From The Wall Street Journal