Originally Posted by
Finessed
I stand corrected let me rephrase.
You file THEN A judge approves the reorganization plan. The judge STILL HAS TO APPROVE your plan. I believe that only 10% of filings that are brought to a judge and requesting approval for chapter 11 are accepted.
Just because I file a lawsuit towards someone, does not necessarily result I’ll win the the case after being presented.
If you bring your plan of reorganization for your business to a judge with 42 billion in debt, and 10 million cash burn per day, GOOD LUCK having that approved.
The result of not receiving chapter 11 approval by a judge, would result in the dreaded chapter 7.
Wrong. Only 5% of Chap 11 bankruptcies are ever converted to Chapter 7, most often by the debtor themself if he/she thinks there will be more residual capital coming to them through liquidation than through reorganization. Judges approve pretty much any viable reorganization that appears that it will not take money away from secured creditors.