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

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

Monster filed for Chapter 11 bankruptcy last year.

From Barron's • Feb. 9, 2026

The company filed for Chapter 11 bankruptcy protection in September 2020.

From The Wall Street Journal • Dec. 19, 2025

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 • Dec. 14, 2025

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

From Salon • Oct. 29, 2025