How Does Chapter 11 Affect Employees and Stakeholders?
Chapter 11 can have significant impacts on various stakeholders:
Employees: Jobs may be preserved, but there could be changes in wages, benefits, or working conditions. Creditors: Creditors may receive less than the full amount owed, but they have a say in the reorganization plan. Shareholders: Equity holders often see a reduction in their ownership stakes as new shares may be issued to creditors.