The debtor in possession
The filing business usually remains in control as debtor in possession under §§ 1107 and 1108. Management takes on duties to the estate and must comply with court orders, reporting requirements, and restrictions on transactions.
That framework is not ordinary operations without consequences. Identify what the business needs immediately: cash collateral authority, payroll administration, insurance, utilities, professional employment, and treatment of critical contracts. The orders requested must fit the case’s facts and legal standards.
Funding the case
Cash on the balance sheet may be subject to a lender’s interest. Section 363(c)(2) conditions use of cash collateral on consent or court authorization. The budget and adequate-protection proposal can become central negotiations early in a case.
New financing is governed by § 364 and any applicable court order. Examine the liens, priority, fees, reporting, milestones, defaults, and alternatives. A financing proposal should be assessed against the value available to the estate, not solely the immediate cash it supplies.
Creditors, committees, and claims
Secured creditors, trade creditors, landlords, employees, tax authorities, and owners may have different rights and incentives. Claims can be disputed, contingent, unliquidated, secured, priority, or general unsecured; these characteristics influence treatment.
Committee appointment and participation depend on the applicable framework. Claims objections, adequate-protection disputes, and plan negotiations require documentation and may materially affect both timing and expense.
Sales and executory contracts
Section 363 can support a sale outside the ordinary course after the required process. A sale free and clear under § 363(f) requires an applicable statutory condition. The sale order and purchase agreement must identify assets, liabilities, interests, and the protection actually provided.
Section 365 supplies a separate framework for assumption, rejection, and assignment of executory contracts and unexpired leases. Cure, adequate assurance, consent, and statutory exceptions can matter. A business sale that depends on contracts must coordinate both workstreams.
Plan structure and confirmation
A plan specifies treatment of claims and interests. Sections 1122 and 1123 address classification and plan contents; § 1129 sets confirmation requirements. Disclosure, solicitation, voting, priority, feasibility, and dissenting-class treatment can each become contested.
Confirmation is not just approval of a favorable forecast. The plan must satisfy applicable statutory requirements, and its funding and operational assumptions need evidentiary support. Existing owners may not retain their interests merely because they propose the plan.
Reorganization, liquidation, and failure risk
Chapter 11 may reorganize a continuing business or implement a liquidation. The effect of confirmation and discharge must be analyzed under § 1141 and the applicable exceptions, including rules relevant to a liquidating debtor.
Conversion or dismissal under § 1112 may become relevant when a case cannot meet its obligations or reach a viable outcome. Define the milestones and downside triggers before available liquidity is exhausted.
Qualifying debtors may consider Subchapter V, which changes important plan and oversight rules. It is a distinct statutory pathway, not simply an informal or less expensive version of every Chapter 11 case.