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

Nicklaus Cos., founded in 2007 when Nicklaus sold a large stake in his design, equipment manufacturing and licensing businesses, is expected to explore a sale of its business or a reorganization in chapter 11.

From The Wall Street Journal

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

From The Wall Street Journal

Santander’s other lending relates to invoicing at Ultinon, a headlights maker that isn’t in the chapter 11 proceedings, and to the First Brands units in Mexico and Brazil.

From The Wall Street Journal

First Brands filed for chapter 11 in late September with more than $10 billion in liabilities.

From The Wall Street Journal

Federal judge Sean Lane said in a New York court that he would sign off on the company Chapter 11 plan, with a formal ruling expected at a hearing on Tuesday.

From Barron's