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

Hertz filed for Chapter 11 bankruptcy protection in 2020 before emerging in June 2021.

From MarketWatch • Apr. 30, 2026

Spirit, known for its cheap, no-frills flights and bright yellow planes, filed for Chapter 11 bankruptcy a second time last August after multiple years of deep and growing losses.

From Barron's • Apr. 22, 2026

QVC Group commenced a voluntary Chapter 11 bankruptcy as part of a restructuring support agreement.

From The Wall Street Journal • Apr. 17, 2026

In February 2024, general contractor Lendlease filed a petition for the involuntary Chapter 11 bankruptcy of Oceanwide Holdings to force a sale of the property and pay creditors who were demanding almost $400 million.

From Los Angeles Times • Feb. 23, 2026

In 2024, Frinj Coffee filed for Chapter 11 bankruptcy, claiming about $215,000 in assets while listing more than $1.8 million in liabilities, the Santa Barbara Independent reported.

From Los Angeles Times • Feb. 13, 2026