To find out if that is true, FTI used S&P’s Capital IQ bankruptcy database to conduct an analysis of Chapter 11 filings that occurred between January 2000 and June 2016 where a debtor had at least 0 million in debt or assets.
The findings revealed that the proportion of large retail debtors that liquidate is, in fact, consistently far greater than the proportion of non-retailers — by a whopping 48% to 22%, respectively.
Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs, debts and assets. As the most complex of all bankruptcy cases and generally the most expensive, a company should consider Chapter 11 reorganization only after careful analysis and exploration of all other alternatives. It takes between a few months and two years to complete a Chapter 11 bankruptcy case.
bankruptcy code 11, Chapter 11 is generally filed by corporations that require time to restructure their debts, and it gives the debtor a fresh start, subject to the debtor's fulfillment of his obligations under the plan of reorganization. Corporations, partnerships and limited liability companies (LLCs) usually file Chapter 11, but in rare cases, individuals with a lot of debt, who do not qualify for Chapter 7 or 13, may qualify for Chapter 11.
Chapter 11 helps a business restructure its debts and obligations. While a business is in the midst of filing Chapter 11, it may still continue to operate.
They include General Motors, United Airlines, K-mart and thousands of other corporations.
In sum, the proper retention of claims and causes of action in a plan not only protects a liquidating trustee from attack under res judicata but also may be necessary, depending on the jurisdiction, to confer jurisdiction on the bankruptcy court to hear and determine such claims and causes of actions under the bankruptcy court's "related to" jurisdiction.
In such circumstances a dismissal or as it is sometimes called a "structured dismissal" may make more sense.
An article in the American Bankruptcy Institute Journal Volume XXIX, Number 5 at page 44 entitled Structured Chapter 11.
There is no question that many insolvency professionals are busier now than at any time during the last eight years.
"Shakeouts" are going on in a number of industries. And bankruptcy lawyers are a "hot" hire once again.