In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business.

Any residual amount is returned to the owners of the company. Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business.

By establishing a liquidating trust pursuant to section 1123(b)(3) in a confirmed plan of reorganization or liquidation, a debtor can transfer causes of action and other assets to a trust, for future liquidation and distribution to the debtor’s creditors, and avoid delaying plan confirmation.

The creditors become the trust beneficiaries and their claims are paid from trust assets by a waterfall established pursuant to the plan.

Any reconciliation of payments must come from the Kansas City Teller Unit.

This section contains information about the basic purpose and procedural workings of a Chapter 11 bankruptcy case.

It explains the ways in which a Chapter 11 bankruptcy case is different from a bankruptcy case brought under other chapters of the United States Bankruptcy Code (USBC).

These assets are to be liquidated by a court-appointed trustee, with the proceeds going to creditors.

3”New GM” represents a new corporation containing only the attractive assets held by the U. and Canadian operations and primarily owned by the U.