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

Orlando, Fla.-based Red Lobster filed for Chapter 11 bankruptcy protection in May 2024 after years of declining traffic and an overly generous all-you-can-eat shrimp deal that piled up steep losses.

From The Wall Street Journal

Monster filed for Chapter 11 bankruptcy last year.

From Barron's

Eddie Bauer’s retail stores outside of the U.S. and Canada are operated by other licensees, and aren’t included in the chapter 11 filings.

From The Wall Street Journal

The five-year-old company filed for chapter 11 bankruptcy reorganization in December, citing the drop in demand coinciding with immigration raids.

From The Wall Street Journal

The chapter 11 filing “is the most responsible thing I can do,” Cavazos told The Wall Street Journal.

From The Wall Street Journal