Chapter 11 Plan

A Chapter 11 plan is a legal strategy that allows a financially distressed company to reorganize its debts while continuing its operations. Under this plan, the company proposes how it will pay creditors over time, often by restructuring debt, selling assets, or finding new financing. Creditors and the court must approve the plan, which aims to restore the company's profitability and ensure it can meet financial obligations moving forward. Ultimately, the goal is to emerge from bankruptcy stronger and able to continue business, benefiting both the company and its creditors.