What Is Chapter 11?

Patrick Curtis

审查

Patrick Curtis WSO Editorial Board

Expertise:Investment Banking | Private Equity

Chapter 11is a bankruptcy filing with the SEC which is undertaken by any company which cannot pay its creditors and is therefore bankrupt. TheChapter 11filing provides bankruptcy protection to the company and allows it to restructure itself and it's assets to maximize creditor and shareholder value before the company is closed.

When a company files for Chapter 11, its shares are delisted from any exchange it is currently listed on and cannot be traded. Once all assets have been liquidated, creditors are paid off and if they are paid in full, the rest of the value is split amongst shareholders.

One of the most infamous Chapter 11 filings in history is that of Lehman Brothers in 2008 as a result of the financial crisis.

Related Terms

返回金融词典

Patrick Curtisis a member ofWSO Editorial Board这有助于确保在华尔街绿洲的顶级文章中内容的准确性。万博app足彩下载他在罗斯柴尔德(Rothschild)的投万博app网页版资银行业务和沃顿商学院(Wharton Business)的MBA学位上有经验。他还是华尔街绿洲的创始人兼现任首席执行官,此内容最初是由成员创建的万博app足彩下载wallstreetoasis.comand has evolved with the help of our mentors.