These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling the creditors' rights to enforce their security reach different conclusions. == Statistics == === Frequency === Chapter 11 cases dropped by 60% from 1991 to 2003.
The 16 largest corporate bankruptcies as of 13 December 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as a new company with a similar name. ‡ The Enron assets were taken from the 10-Q filed on November 11, 2001.
Every major US airline has filed for Chapter 11 since 2002.
These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling the creditors' rights to enforce their security reach different conclusions. == Statistics == === Frequency === Chapter 11 cases dropped by 60% from 1991 to 2003.
An example is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11.
One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11.
The 16 largest corporate bankruptcies as of 13 December 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as a new company with a similar name. ‡ The Enron assets were taken from the 10-Q filed on November 11, 2001.
More specifically, the right of the lender to take possession of the secured equipment is not hampered by the automatic stay provisions of the Bankruptcy Code. === Subchapter V === In August 2019, the Small Business Reorganization Act of 2019 (“SBRA”) added Subchapter V to Chapter 11 of the Bankruptcy Code.
Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of the advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs.
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