When things go wrong
Chapter 11
A US court procedure that lets a company keep operating while it reorganises its debts under court protection.
Chapter 11 of the US Bankruptcy Code protects a company from its creditors while it works out a plan to restructure. Management usually stays in place, and the company can raise new “debtor-in-possession” financing to keep going.
European companies with US operations sometimes use Chapter 11 too. It does not always succeed: if no viable plan or buyer is found, the company can still end in liquidation.
General explanation for education only, not investment advice. Company-specific definitions can differ; each breakdown uses the company’s own.