Chapter 11 Plan of Reorganization

A Chapter 11 Plan of Reorganization is a legal document filed by a company as part of its Chapter 11 bankruptcy case. The plan outlines the company’s proposed strategy for restructuring its debts and operations in order to emerge from bankruptcy as a viable business. The plan typically includes provisions for the repayment of creditors, the sale or transfer of assets, and the modification of the company’s ownership and management structure. The plan must be approved by the bankruptcy court and a majority of the company’s creditors before it can be implemented. Once approved, the Chapter 11 Plan of Reorganization serves as a binding contract between the company and its creditors and provides a roadmap for the company’s financial recovery.