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

On Aug. 4, the operating company behind the Mirage filed for chapter 11 bankruptcy protection, citing a failed renovation as the main cause of the club’s financial woes.

From The Wall Street Journal

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

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

In August, Brahmbhatt’s telecom companies and Carriox each filed for chapter 11 bankruptcy in New York.

From The Wall Street Journal

Orlando, Fla.-based Red Lobster filed for Chapter 11 bankruptcy protection in May 2024 after years of declining traffic and an overly generous all-you-can-eat shrimp deal that piled up steep losses.

From The Wall Street Journal