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 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

That, along with factors like a cyberattack and a major disagreement with creditors, contributed to a Chapter 11 bankruptcy filing for Stoli’s U.S. distribution company and the company that owns the barrels aging Kentucky Owl.

From The Wall Street Journal • May 17, 2026

Parent company Luminar Technologies struck an agreement to sell the business after filing for Chapter 11 bankruptcy last December.

From Barron's • May 11, 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

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

From MarketWatch • Apr. 30, 2026