Category Archives: Chapter 11
Preparing for Chapter 11: What to Do and What Not to Do
For a business facing financial distress, the weeks or months leading up to a Chapter 11 bankruptcy are often critical. The success or failure of a reorganization is frequently determined not by what happens in court but by steps or missteps made just before filing. Businesses unwittingly can undermine their own cases by delaying action, […]
Why the Disclosure Statement Serves as a Central Pillar in Chapter 11
In a Chapter 11 bankruptcy, the disclosure statement is a mandatory document that bridges the gap between a debtor’s reorganization plan and creditors’ rights to vote on that plan. Its function is to provide adequate information to creditors, enabling them to make an informed judgment about whether to accept or reject the proposed plan. The […]
How Cramdowns Can Help With a Chapter 11 Reorganization
A cramdown is a powerful tool available under the U.S. Bankruptcy Code, allowing a court to approve a business’s Chapter 11 reorganization plan even if certain creditors object. In essence, a cramdown prevents a single group of creditors from holding up a plan that would keep the business running, preserve jobs and potentially pay creditors […]
Even Without a Recession, Financial Distress Among Businesses Is Rising
Although the U.S. economy closed out 2025 without a formal recession, a growing number of businesses have been finding themselves in financial distress. For many companies, the pressure has been building quietly for years and the cumulative effect is now palpable. Companies are increasingly filing for Chapter 11 bankruptcy relief not because of an economy-wide […]
Negotiating With Creditors During a Chapter 11 Restructuring
One of the most critical aspects of a Chapter 11 can be negotiating with creditors on key aspects of the restructuring plan. The goal is to forge agreements that allow the business to stabilize and recover while ensuring creditors recover as much as possible relative to the alternative: liquidation. Businesses that approach creditor negotiations with […]
What Is the Typical Timeframe of a Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a legal process designed to help financially distressed businesses reorganize their debts and regain solvency. Chapter 11 gives the business the opportunity to restructure its finances, renegotiate contracts and develop a plan for repaying creditors over time, rather than having to liquidate assets and cease operations. The Chapter 11 process is […]
Protecting, Monetizing and Leveraging IP Assets During Chapter 11
When a company enters Chapter 11 bankruptcy, it faces a critical juncture, one in which the primary goal is to obtain debt relief. The remedy also offers a chance to reorganize operations, improve its balance sheet and emerge as a stronger entity. Among a business’s greatest assets is its intellectual property (IP). Whether consisting of […]
How the Automatic Stay Works in Chapter 11 Cases
The automatic stay is a powerful tool for a business seeking Chapter 11 protection. It takes effect the moment the petition is filed and functions as a court-ordered injunction that bars most creditors from continuing or starting collection activities against the debtor or the debtor’s assets. That means prepetition lawsuits, garnishments, foreclosures, repossessions, repossession threats, […]
Prepackaged vs. Traditional Chapter 11 — Which Is Right for You?
For distressed companies seeking a path to financial stability, Chapter 11 bankruptcy is a powerful tool, offering the possibility of reorganizing debts while continuing operations. However, not all Chapter 11 filings are created equal. Business owners considering this relief must choose between two primary options: traditional Chapter 11 and prepackaged Chapter 11. Traditional Chapter 11 […]
How Chapter 11 Can Help Save a Failing Franchise
Franchise businesses, especially in industries like food service, hospitality and retail, often face heightened financial pressures. These can be due to high overhead — such as lease payments, royalty and advertising fees, payroll and inventory — combined with evolving consumer tastes, disruptive economic trends and internet business, which has shifted how customers interact with brands. […]
