Consumer Bankruptcy Law and Practice: 18.7.15.1 Generally
Companies facing pressure to restructure in order to remain competitive may turn to chapter 11 filings as a means of doing so. A chapter 11 filing enables a struggling company to shed less profitable operations and burdensome obligations. This not only affects the company’s suppliers, customers, secondary lenders, tort claimants, and so forth, but it can be devastating to the livelihoods of its employees and the economic vitality of its local community.