I think also too, that a section 11 protects you from your creditors in such a way that they cannot apply to bankrupt a company or individual whilst it is under a section 11 agreement. If the company fails to then pay its creditors after a specified time frame, then they can certainly apply to the courts for a bankruptcy order. It just gives a company a bit of time to sell off excesses and call in accounts that may be still outstanding that may help to pay their bills.I think the major creditors may have had to approve of the chapter 11 in the first place, then they have to abide by the conditions placed on it also. Best to get some monies owed than nothing.
