A chapter of the United States Bankruptcy Code that provides for the reorganization of a business, allowing it to restructure its debts while continuing operations. Chapter 11 is typically used by businesses facing financial difficulties but seeking to stay in business while they reorganize their debts and restructure their operations. Under Chapter 11 the company creates a court approved reorganization plan under which the goal is to have the company exiting from Chapter 11. Should this not be possible, then the company may be forced to file Chapter 7 bankruptcy, which involves liquidation of the company assets.
Chapter 11
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