Tops Markets is planning to restructure its debt under Chapter 11 of the bankruptcy code — but what does that mean?
A Chapter 11 bankruptcy filing doesn't mean a company is going out of business. The purpose of a Chapter 11 filing is to keep a company alive, allowing it to reorganize and emerge stronger than before. The process allows a company to restructure its debt so that debt load is lighter and its payments are more affordable.
General Motors, Chrysler, Delta Airlines and United Airlines are among the companies that have gone through bankruptcy proceedings.