|
Chapter Eleven
Reorganization proceedings, generally for business entities; the debtor maintains control of the business in Chapter 11 (unless the Court appoints a trustee).
Debtor-in-possession
The debtor which remains in control of operations; as opposed to having a trustee operate the company.
Disclosure statement
A comprehensive disclosure document sent to creditors when they are asked to vote on a plan of reorganization in Chapter 11.
Secured creditors
One of two general types of creditors of a company. Secured creditors have a lien on property of the company.
Set-off
The ability to discharge or reduce a debt by applying a counter claim between the same parties.
Bankruptcy Court
The federal tribunal where cases under the Bankruptcy Code are litigated.
Post-petition
Occurring after the filing of a petition. Preference - a payment by a debtor made during a specified period (90 days or one year) prior to the filing that favors one creditor over others.
Exclusivity (period of)
A debtor in Chapter 11 has the exclusive right to file a plan of reorganization for the first 120 days of its bankruptcy. Thereafter, unless the period of exclusivity is extended by the court, other parties may file reorganization plans.
Petition
The document that commences a bankruptcy proceeding. plan of reorganization - the document setting forth how a bankrupt company plans to satisfy its creditors.
Chapter Twenty Two
An unofficial term describing a company that has filed for Chapter 11 twice.
|
Did You Know?