Chapter 11 proceedings

Chapter 11 proceedings are a legal process where a financially troubled business seeks court protection to restructure its debts while continuing operations. It allows the company to negotiate with creditors, develop a repayment plan, and keep assets, rather than liquidate entirely. The goal is to restore the company's profitability and stability through reorganization. During this process, a court-appointed trustee or management oversees the plan's implementation, and creditors vote on its approval. Chapter 11 offers a structured way for distressed businesses to recover and emerge healthier, while providing some protection from creditors' claims during the restructuring period.