Chapter 11

Or Chapter Eleven,

noun

U.S. Law.

1. a section of the Bankruptcy Code that provides for the reorganization of an insolvent corporation under court supervision and can establish a schedule for the payment of debts and, in some cases, a new corporation that can continue to do business.

chapter 11

noun

1. the statute regarding the reorganization of a failing business empowering a court to allow the debtors to remain in control of the business to attempt to save it

   they are in chapter 11

Word History and Origins

Origin of Chapter 11¹

C20: from chapter 11 of the Bankruptcy Reform Act (1978)

Example Sentences

On the day that First Brands filed for chapter 11 last month, restructuring advisers presented lenders with documents showing $1.6 billion of “customer programs factoring,” meaning factoring in which First Brands’ customers would directly pay the financial institutions that purchased their invoices.

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BDO’s audit of First Brands’ 2024 financials, reviewed by WSJ Pro Bankruptcy and CFO Journal, didn’t reveal the billions of dollars of off-balance-sheet debt and unpaid balances owed to financing providers that weighed on the company as it descended into chapter 11.

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Brahmbhatt, who had granted the lenders’ request to give a personal guarantee on the loans, filed for bankruptcy himself on Aug. 12, the same day his telecom companies filed for chapter 11.

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

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News on Wednesday that lender PrimaLend filed for Chapter 11 bankruptcy protection may have been the final straw for many shareholders.

Read more on Barron's