Chapter 11 Proceedings


Also found in: Dictionary, Legal.

Chapter 11 Proceedings

Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation.

Chapter 11

The process of the reorganization of a bankrupt company under the supervision of a court or the appropriate regulator. Chapter 11 proceedings require a reorganization plan, which is filed with the bankruptcy court or regulator and describes how an insolvent company will change structurally to help it pay its debts and stay in business. This plan is subject to court or regulator oversight to ensure enforcement. Depending upon the specific plan, a company's original owner or managers may maintain control. Other times, the company's creditors become the new owners of the business; this especially happens when one or more creditors have had their debt completely discharged. Changes also must occur structurally (perhaps in risk management or marketing or perhaps in something more fundamental) to ensure that the bankruptcy does not repeat itself.
References in periodicals archive ?
The committee decided an objective of financial statements issued by an entity in chapter 11 proceedings should be to reflect its financial evolution during that period.
Island Pacific and 3Q Holdings Limited wants to clarify that Island Pacific is not part of the Chapter 11 proceedings of Retail Pro.
Sobelmar's principal legal advisor for the restructuring process and Chapter 11 proceedings is Bracewell & Giuliani LLP, with the Hamburg-based Falkenberg Law Office continuing to provide normal course corporate and maritime legal services.
Bankruptcy Court for the District of Delaware is presiding over the Chapter 11 proceedings of DURA and its U.
To help support its business during the Chapter 11 proceedings, the Company has reached an agreement in principle for $1 million in debtor-in-possession (DIP) financing from Boston Equities Corporation ("Boston Equities").
Federal-Mogul Corporation (OTCBB:FDMLQ) and various of its constituencies in the Chapter 11 proceedings have reached agreement with the United Kingdom (UK) Administrators of Federal-Mogul's UK affiliates.
There will be no disruption to the services provided to enrollees and UHP will continue to provide these services throughout the Chapter 11 proceedings.
Mirant Corporation and its affiliates entered Chapter 11 proceedings in July of 2003.
During the Chapter 11 proceedings, Torch will continue to operate in the ordinary course of business.
Company expected to successfully emerge from "prepackaged" chapter 11 proceedings on or about November 18, 2004
AET plans to continue to provide customers with its complete range of products and services and to pay its trade creditors in full on a current basis during the chapter 11 proceedings.
Additional information can be obtained on B&W's reorganization and Chapter 11 proceedings at www.