Chapter 11

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.

chapter 11

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

Word History and Origins

Origin of Chapter 11¹

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

Example Sentences

Six years ago, the company, previously known as Clear Channel, emerged from a Chapter 11 bankruptcy proceeding designed to restructure more than $10 billion in debt, reducing its obligations to $5.75 billion.

Read more on Los Angeles Times

On July 2, the company filed for Chapter 11 bankruptcy—and sued Trinity Broadcasting, claiming that the distributor caused Merit to “lose its national distribution by withholding payments,” forcing McGraw’s network to seek third-party distributors and putting it on the hook for nearly $100 million.

Read more on Slate

In early August, Professional Bull Riders objected to the bankruptcy in court and cited Envoy in accusing Dr. Phil of “orchestrating” the Chapter 11 motion to avoid paying debts.

Read more on Slate

First Brands filed Chapter 11 bankruptcy on Sept. 29 with more than $10 billion of debt.

Read more on MarketWatch

As First Brands slipped toward its chapter 11 filing, top lenders demanded that the company bring in new independent directors to examine its books.

Read more on The Wall Street Journal