Creditors' Rights 7
Q: What is Chapter 22 bankruptcy? Do any prominent examples come to mind?
A: US Airways is an example of a company in serial bankruptcy. Because companies often emerge from Chapter 11 undercapitalized, many reorganized companies will slip back into bankruptcy. Once a company slips back in, it is frequently liquidated or sold. Because companies know a Chapter 22 often means liquidation, many may liquidate outside of bankruptcy rather than file again.
US Airways is an example of a very large company in bankruptcy protection that is very visible in the news media. Because it is relatively easy for a small company to file for bankruptcy protection without their creditors getting early notice, it is always good to contact a creditors' rights law firm for advice when you are having payment problems with your key accounts.
