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

The store closed more than five years ago in the wake of a 2018 filing by its parent company for Chapter 11 bankruptcy protection.

From Los Angeles Times • Jun. 19, 2026

The first of the big digital-media giants to fall was Vice, which filed for Chapter 11 bankruptcy protection in 2023.

From MarketWatch • May 20, 2026

Villa Chardonnay filed for Chapter 11 bankruptcy in October 2025 after the property in Julian went into foreclosure stemming from a $1.6-million unpaid loan, according to court records.

From Los Angeles Times • May 9, 2026

Purdue first filed for Chapter 11 bankruptcy in 2019 as the company faced a surge in opioid-related lawsuits.

From The Wall Street Journal • Apr. 28, 2026

Spirit has twice filed for Chapter 11 bankruptcy protection since—it hopes to finally emerge from it in the summer.

From Barron's • Apr. 14, 2026