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Guidelines for Director Decision Making in Chapter 11

Chapter 11 is designed to enable a company in financial distress to preserve its business as a going concern and maximize the distributable value to creditors. This may be accomplished through the debtor's rehabilitation of its business and restructuring of its balance sheet through a stand-alone plan of reorganization or through the sale of its assets or businesses pursuant to section 363 of the Bankruptcy Code (or a Chapter 11 plan). The best course of action to preserve the debtor as a going concern and maximize value is dependent on the facts and circumstances of the Chapter 11 case and the interests of the relevant stakeholders.

26 minute read December 01, 2003 at 01:14 PM
By
Jonathan S. Henes and Lisa G. Laukitis
Guidelines for Director Decision Making in Chapter 11

Chapter 11 is designed to enable a company in financial distress to preserve its business as a going concern and maximize the distributable value to creditors.

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