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 ?
To help support its business during the Chapter 11 proceedings, SMART Papers has obtained debtor-in-possession (DIP) financing from Wachovia Capital Finance, Ft.
The Portland, Ore., archdiocese and the Tucson, Ariz., diocese are under Chapter 11 proceedings after failing to reach out-of-court settlements on millions of dollars in claims over clergy sexual abuse of minors.
It also covers a range of topics regarding Chapter 11 proceedings, proceedings of reorganizations, avoidance/preferential transfer disputes, objections to plan, discovery disputes, and findings of court-appointed examiners.
They believe that they will have a far better chance of eventually being paid the money they are owed under the Chapter 11 proceedings compared to legal proceedings in the UK.
"Dealers should see no effect whatsoever from CFC's Chapter 11 proceedings. Mill Creek Bank continues to fund business without interruption, and no changes are expected," he said.
The bankruptcy law resources section includes links to the American Bankruptcy Institute, a directory of companies in Chapter 11 proceedings and the Center for Debt Management.
Tulip went into the Dutch equivalent to Chapter 11 proceedings in April last year (CI No 3,397), returning from the brink in mid-year thanks to the entry of new investors, the Begemann group, with an initial $50m injection of capital.
Following a vote of Bradlees creditors, the Bankruptcy Court last week confirmed Bradlees' Plan of Reorganization, allowing the regional discount retailer to emerge from Chapter 11 proceedings.
But what statistics don't show is the change in the content and process of Chapter 11 proceedings as companies seek court protection and time to reorganize.
After nearly three years of enduring Chapter 11 proceedings, New Orleans' Dixie Brewing Co.
Bankruptcy court has agreed to a reorganization for the Odd Lot stores, which Revco sold while it was under Chapter 11 proceedings. Revco sold the 103 stores in November 1988, to Riklis Family Corp.
Non-recourse subsidiary SN EF UnSub, LP and certain other unrestricted subsidiaries of the Company are not included in these Chapter 11 proceedings.