Date Added: Dec 2009
A staggering 85% of Chapter 11 Bankruptcy cases never make it to a confirmed plan of reorganization. In fact, lack of cash causes many companies to liquidate within a few weeks after filing. Many business leaders go into bankruptcy with unrealistic expectations. Through conversations with peers and selective listening with lawyers, they mistakenly believe that a bankruptcy filing will, in effect, give them an infusion of cash. They further believe that in the course of the Chapter 11 case, the normal priority - secured lenders, unsecured trade creditors and equity ownership - will be turned on its head.