Often a Chapter 11 filing seeks to reorganize a business by eliminating unprofitable obligations and re-starting as a viable business. Another legitimate goal of a Chapter 11 filing can be the orderly liquidation of the assets of a business for the benefit of both the owners of the business and the creditors. An owner of a business may be the best person to sell assets of a business at the highest price due to the owner's familiarity with the business and business contacts. It often makes sense for an owner to continue to run the business while seeking a sale of either the entire business or assets of the business.
Being under Chapter 11 Bankruptcy protection can be the best way to wind up or sell a business in trouble.
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