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 company filed for Chapter 11 bankruptcy protection in September 2020.

From The Wall Street Journal

Main Street Sports was formerly known as Diamond Sports Group, which emerged from Chapter 11 bankruptcy in January.

From The Wall Street Journal

Roomba maker iRobot filed for Chapter 11 bankruptcy Sunday and will turn over its business to a pair of Chinese companies and go private, capping a years-long fall from grace.

From MarketWatch

By September, Sonder was exploring strategic alternatives, including a potential sale or a restructuring through Chapter 11 bankruptcy.

From The Wall Street Journal

Candy Warehouse, located in Sugar Land, Texas, voluntarily filed for Chapter 11 bankruptcy protection on Oct.

From Salon