Chapter 11

or Chapter Eleven, Chapter XI

noun

, U.S. Law.

1. a section of the Bankruptcy Code that provides for the reorganization of an insolvent corporation under court supervision and can establish a schedule for the payment of debts and, in some cases, a new corporation that can continue to do business.

chapter 11

noun

1. the statute regarding the reorganization of a failing business empowering a court to allow the debtors to remain in control of the business to attempt to save it

   they are in chapter 11

Word History and Origins

Origin of Chapter 11¹

C20: from chapter 11 of the Bankruptcy Reform Act (1978)

Example Sentences

In a statement, Spirit said the bankruptcy process - known as Chapter 11 - will not impact employee pay or payments to aircraft leasing companies.

From BBC

TGI Fridays Inc., the casual dining restaurant chain, filed for Chapter 11 bankruptcy Saturday.

From Salon

The Chapter 11 restructuring process will allow TGI Fridays “to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”

From Salon

TGI Fridays has “secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process,” the statement specified.

From Salon

TGI Fridays follows in the footsteps of Red Lobster and Buca di Beppo chains, which filed for Chapter 11 bankruptcy in the past months.

From Salon