Chapter 11

(redirected from Chapter 11 Proceedings)
Also found in: Dictionary, Financial.

Chapter 11

(US) part of the Bankruptcy Reform Act of 1978 that allows an alternative to liquidation under Chapter 7. The business is preserved as a going concern. There is usually no trustee, and the business maybe conducted by a committee of creditors. The debtor is given 120 days to submit a plan for liquidation or reorganization. All significant decisions need to be approved by the Bankruptcy Court. For the UK process of administration, see ADMINISTRATOR.
References in periodicals archive ?
While we are disappointed in the lender's intransigence, we want to assure our customers and suppliers that Sobelmar will continue to operate in the ordinary course of business during our Chapter 11 proceedings and that we intend to emerge from Chapter 11 on a financially sound footing.
The committee decided an objective of financial statements issued by an entity in chapter 11 proceedings should be to reflect its financial evolution during that period.