Chapter 1: Overview of Chapter 11

Chapter 1: Overview of Chapter 11

by Richard F. Hahn & Jasmine Ball

Debevoise & Plimpton LLP, New York

Chapter 1 focuses on chapter 11 of the U.S. Bankruptcy Code, which provides chiefly for the reorganization, but also for the liquidation, of corporate debtors. Lawyers advising troubled companies must be familiar with the framework of chapter 11 and its salient provisions. This chapter provides an overview of chapter 11: more detailed treatment of particular provisions is given elsewhere in this book. The chapter 11 framework consists, first, of overarching policies such as "rehabilitation of the debtor" and "equality of treatment of creditors," and, second, of structural components: the principal actors, their tools, powers and limitations, and the formal process that must be navigated. The principal actors in a chapter 11 case include the debtor in possession, the official committees, the bankruptcy court and the United States trustee.  The tools, powers and limitation include the bulwark of the automatic stay and the power to continue operation of the debtor's business within a chapter 11 case-using the debtor's property, seeking new financing and sifting beneficial executory contracts and unexpired leases to assume from detrimental contracts to reject. Other powerful tools discussed include the rules of preferences and fraudulent conveyances. Key processes include plan formulation and plan confirmation.

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The Collier Guide to Chapter 11: Key Topics and Selected Industries is the latest addition to the Collier line of bankruptcy products from LexisNexis. Written by over 20 bankruptcy lawyers from leading firms, the Guide takes an in-depth look at the key topics involved in current chapter 11 practice and the special issues that arise in selected industries. It fills the gap between the Code-based coverage of Collier on Bankruptcy and the more general topical approach of the Collier Bankruptcy Practice Guide. Visit the LexisNexis Book Store to learn more.   

Collier Guide to Chapter 11 authors will be participating in a free CLE accredited webinar on Oct. 19, beginning at 2 pm ET. During the webinar, you will hear highlights from the new publication that will cover topics including issues affecting reorganizations for the retail industry, treatment of hospitals and health care businesses in Chapter 11 and Debtor-in-Possession (DIP) financing in the aftermath of the credit crisis.

Register for the free webinar today.