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

The iPic dine-in movie theater chain has filed for Chapter 11 bankruptcy protection and intends to pursue a sale of its assets, citing the difficult post-pandemic theatrical market.

From Los Angeles Times

Its parent, Luminar Technologies, struck an agreement to sell the business to Quantum Computing after filing for Chapter 11 bankruptcy in December.

From Barron's

On Aug. 4, the operating company behind the Mirage filed for chapter 11 bankruptcy protection, citing a failed renovation as the main cause of the club’s financial woes.

From The Wall Street Journal

In February 2024, general contractor Lendlease filed a petition for the involuntary Chapter 11 bankruptcy of Oceanwide Holdings to force a sale of the property and pay creditors who were demanding almost $400 million.

From Los Angeles Times

In 2024, Frinj Coffee filed for Chapter 11 bankruptcy, claiming about $215,000 in assets while listing more than $1.8 million in liabilities, the Santa Barbara Independent reported.

From Los Angeles Times