Fannie Mae-No Politics (FNMA)

[FFFacts]

Reorganization.

Chapter 11: Business Reorganization

Chapter 11 is a plan where a company reorganizes and continues in business under a court-appointed trustee. The company files a detailed plan of reorganization outlining how it will deal with its creditors. The company can terminate contracts and leases, recover assets, and repay a portion of its debts while discharging others to return to profitability.4? It presents the plan to its creditors will vote on the plan. If the court finds the plan is fair and equitable, it will approve the plan.

Reorganization plans provide for payments to creditors over some time. Chapter 11 bankruptcies are exceedingly complex and not all succeed. It usually takes over a year to confirm a plan.

Also research: Living wills and the comment proposal submitted by FHFA.