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

The company has been struggling to rebound since it filed for Chapter 11 bankruptcy protection in 2017.

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“It’s not a routine Chapter 11 case,” a lawyer for lenders that have agreed to provide First Brands with more than $1 billion in emergency debtor financing told the judge.

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Reorganization under the protection of Chapter 11 of the bankruptcy code eventually emerged as the best option.

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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.

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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.

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