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Bankruptcy Reorganization under Chapter 11 By Suzzanne Uhland

Bankruptcy Reorganization under Chapter 11

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Page 1: Bankruptcy Reorganization under Chapter 11

Bankruptcy Reorganization under Chapter 11 By Suzzanne Uhland

Page 2: Bankruptcy Reorganization under Chapter 11

Introduction• A partner at O’Melveny & Myers LLP, Suzzanne

Uhland is head of the firm’s U.S. restructuring practice. Suzzanne Uhland regularly represents clients in Chapter 11 bankruptcy proceedings, which typically involve the reorganization of a partnership or corporation.

Unlike a Chapter 7 bankruptcy, in which a business ceases all operations and sells its assets to acquire the money necessary to pay off its debts, a Chapter 11 bankruptcy usually allows the debtor to retain control of business operations.

Page 3: Bankruptcy Reorganization under Chapter 11

Chapter 11• The debtor then takes on the role of “debtor in

possession” and is subject to court oversight during the transition.

Debtors in possession can pursue a number of restructuring options, such as seeking out financing and loans in exchange for equity offerings. Regardless of the solution the debtor suggests, the court ultimately rules on the merits of the proposed plan under U.S. bankruptcy law. The debtor is required to provide the court with enough information to make that determination.