lowtrade

[lowtrade]

The court can appoint a trustee which helps the company. The court does not help.

What the court does is say the company, in chapter 11, can or can not attempt to restructure and refinance the debtors debit, based on the plan the company presents to the court.

Bankruptcy itself is a petition filed by the debt holders. Chapter 11 is filed by the company in an attempt to keep the debt holders from taking the company, to repay bad debt.

All this takes place normally after both debt holder and company management has discussed restructuring the debit owed. And the debt holders can't see a way the company can continue operation and repay what's owed.