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

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

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 financial data group Octus earlier reported that Catalyst Brands is preparing to file for Chapter 11 bankruptcy in February.

From Los Angeles Times

Following a reorganization, Eddie Bauer became a standalone company but once again filed for Chapter 11 bankruptcy protection in 2009, after which it was purchased out of bankruptcy by a California private equity firm.

From Los Angeles Times