What is one of the main goals of Chapter 11 bankruptcy?

One of the main goals of Chapter 11 bankruptcy is to allow a company to restructure its debts and operations, providing a chance for the business to regain profitability while continuing its operations. Unlike other forms of bankruptcy that may involve immediate liquidation or the settling of debts, Chapter 11 focuses on creating a plan that can help the organization reorganize its financial obligations. This restructuring often includes renegotiating contracts, reducing debts, and altering payment plans, which enables the company to stabilize its financial situation and eventually emerge from bankruptcy as a viable entity. This option is particularly crucial for larger businesses that have valuable assets and ongoing operations that would benefit from reorganization rather than quick liquidation.