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

Saks Global, which owns Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection in January, citing overwhelming debt.

From Los Angeles Times

But with his company now mired in chapter 11, hedge funds including Brigade Capital Management and Taconic Capital Advisors want him gone during bankruptcy, saying in court papers that he siphoned at least $200 million of company money to enrich himself and his family.

From The Wall Street Journal

FAT Brands hired advisers to restructure its debt outside bankruptcy but filed for chapter 11 shortly after a Jefferies Financial Group subsidiary sued the company for allegedly defaulting.

From The Wall Street Journal

Upon entering chapter 11, FAT Brands employed eight of Wiederhorn’s family members, including his sons and wife, many in senior management roles.

From The Wall Street Journal

“I want to operate in the markets that have the most potential,” said van Raemdonck, who was brought in to lead Saks through bankruptcy after steering Neiman Marcus through its own Chapter 11 proceedings.

From The Wall Street Journal