A Chapter 11 Bankruptcy provides for the reorganization of a company’s debts while under the supervision of the bankruptcy court. Under Chapter 11 certain contracts can be avoided, e.g. labor contracts, leases, supply contracts. Creditor’s claims are based upon priority, thus a secured creditor is paid before an unsecured creditor. Employees and suppliers are paid before unsecured creditors and so on. Debtors have the right to propose a plan of reorganization for a period of time. After that time has elapsed, creditors may propose plans. Creditors vote to approve the plan of reorganization. If a plan cannot be confirmed, the court may either convert the case to a Chapter 7 (liquidated) or dismiss the case leaving the parties to their status quo. If a company’s stock is publicly traded, a Chapter 11 will generally cause the stock to be delisted from its primary exchange.