RE: Order of creditor and contributory ranking on a debtor's insolvency22 Aug 2022 12:52
Chapter 11 bankruptcy is a way for a company to restructure its debt obligations while continuing to operate. However, many companies who file initially under Chapter 11 do eventually succumb to a Chapter 7 liquidation in the end. Investors need to fully assess the risks of holding shares in companies with Chapter 11 or Chapter 7 filings.