debtor in possession


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debtor in possession

n. in bankruptcy proceedings when a debtor has filed for the right to submit a plan for reorganization or refinancing under Chapter 11, and the debtor is allowed to continue to manage his/her/its business without an appointed trustee, that debtor is called a "debtor in possession." (See: bankruptcy)

References in periodicals archive ?
This section limits certain avoidance powers granted to a bankruptcy trustee or debtor in possession as against the reclaimed goods.
Section 546(c) provides that the rights of a trustee, and those of a debtor in possession, are subject to a seller's reclamation rights.