Chapter 11
Bankruptcy allowing business reorganization.
Business Glossary provided by Plannit.ai
Chapter 11 refers to a chapter of the U.S. Bankruptcy Code that provides a process for businesses to reorganize and restructure their debts while continuing to operate. It is designed to allow for a plan of reorganization to keep the business alive and pay creditors over time. Businesses under Chapter 11 protection are given the opportunity to renegotiate terms with creditors and prepare a plan to turn around the business, subject to court approval.
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