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

By September, Sonder was exploring strategic alternatives, including a potential sale or a restructuring through Chapter 11 bankruptcy.

From The Wall Street Journal

Once estimated to be worth $16 billion, Bankman-Fried has said his wealth has all but vanished, while the scores of investors who had held money on the exchange are trying to claw back their funds as FTX wades through Chapter 11 bankruptcy.

From Washington Post

Chapter 11 bankruptcy protection, but later recovered some ground.

From Reuters

On Friday the parent of Silicon Valley Bank filed for Chapter 11 bankruptcy protection.

From Seattle Times

The parent company of the lender SVB Financial Group had on Friday filed for a reorganization under Chapter 11 bankruptcy protection and sought buyers for its assets after steps to shore up investor confidence failed.

From Reuters