Guide · Bankruptcy
Chapter 11 Reorganization: A Comprehensive Guide for Debtors and Creditors
11 U.S.C. §§ 1101
- Type
- Guide
- Jurisdiction
- National
- Date
- 2024-01-06
- Topic
- Bankruptcy
Chapter 11 is the federal statute that lets a struggling business keep operating while it restructures its balance sheet — or sells itself — under court supervision. This guide walks the whole arc: the first-day motions that keep the lights on, the debtor in possession and the fiduciary duties that come with staying in control, cash collateral and adequate protection under Sections 361 and 363, DIP financing and priming liens under Section 364, the creditors' committee, assuming and rejecting executory contracts and leases under Section 365, and the Section 363 sale that has become the modern reorganization's real center of gravity. It then turns to the plan: exclusivity, classification, the disclosure statement, solicitation and voting, confirmation under Section 1129, the best-interests test, the absolute priority rule and cramdown. It closes with Subchapter V for small businesses and with the discharge and release questions the Supreme Court reshaped in Harrington v. Purdue Pharma. Throughout, a fictional retail chain — Fairhaven Stores — runs the doctrine through a real fact pattern from petition to confirmation.
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