Chapter 11 Proceedings


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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 ?
Davy Rosen, CEO of Island Pacific said, "While it is unfortunate that Retail Pro is undergoing Chapter 11 proceedings, we want to reiterate that Island Pacific is a completely separate company that is not affiliated with Retail Pro.
On October 18, 2005 the Calculation Agent notified the Trust of a Bankruptcy Credit Event on Delphi Corporation as a result of Delphi Corporation filing a petition for chapter 11 proceedings under the United States Bankruptcy Code on Saturday October 8, 2005.
On September 26, 2005 the Company filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code ("Chapter 11") and filed for recognition of the Chapter 11 proceedings under the Companies' Creditors Arrangement Act (Canada) (the "CCAA").
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").
The Company also obtained an order under the Companies' Creditors Arrangement Act (Canada) (the "CCAA") recognizing the Chapter 11 proceedings.
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.