Discuss Chapter 11 bankruptcy and its implications. Name and describe two firms that have filed for Chapter 11 bankruptcy in the past year. Analyze the financial conditions in the two firms and...

Chapter 11 Bankruptcy
Introduction of Chapter 11 and its implication:
Chapter 11 of the Bankruptcy Code focuses on providing a method for reorganizing the
debtor’s financial affairs under the supervision of the bankruptcy court. The goal of this code
is to reorganize the debtor with a new capital structure so that the company is able to emerge
from bankruptcy as a viable concern. Chapter 11 is also known as reorganization
bankruptcy, which helps in enhancing the interests of the debtor and its creditors.
This chapter is available for all individuals, partnership, corporations, and other businesses.
The chapter 11,bankruptcy can be filled by debtors as well creditors. With this chapter, the
company focuses on reorganization which proposes the new capital structure for the
organization with which the company is able to reorganize the organization by paying off the
debts of the company.
Firms filled Chapter 11 bankruptcy:
Kmart Corporation:
The Kmart Corporation was founded in 1899 and became one of the most successful retailers
in America. The company offered goods for sale at low prices and was...