Chapter 11, in which bankrupt companies are allowed to reorganize and continue doing business under the protection of the bankruptcy court, generally serves little productive purpose, harms the interests of secured creditors, and should be abolished or greatly modified.

Proponents of Chapter 11 argue that it embodies both good business and social policy. The facts, to the extent they are known, present a different picture.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.