What type of long-term relief may a debtor obtain under Chapter 11?
Long term relief in the form of either a reorganization of the debtor’s business or an orderly, debtor-controlled liquidation of the debtor’s assets may be obtained under Chapter 11. If the debtor’s business is reorganized, it may continue to function either in its present form or in a revised form, and its present creditors will be permitted to satisfy their claims only to the extent provided in the debtor’s plan of reorganization. A reorganization may consist of anything from an extension of time for the repayment of debts to a total restructuring of the business.
