Explain salient features of Chapter 11-Reorganization under US Bankruptcy Code.

American bankruptcy procedures enable sick companies to restructure its debt obligations even while remaining operational. In this context, one must recognise that in the US the well-known Chapter 11 bankruptcy proceedings are considered as re-organization/resurrection process for corporates. Many companies are known to have revived under Chapter 11. Further, Chapter 11 ensures the emergence of companies with sustainable debt levels and profitable working. Chapter 11 bankruptcy proceedings are available to every business, whether organized as a corporation, partnership or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. Salient features of Chapter 11 are as under: Chapter 11 is not a declaration of insolvency. Companies don't file under Chapter 11 to liquidate; they do so in order to continue operating and to take the necessary steps to emerge as a financially stronger business, reorganizing their operations or balance sheet or in some cases by selling substantially all its assets. Management remains in control of the business during the chapter 11 rehabilitative process. Trustees, administrators and monitors typically are not appointed. Chapter 11 normally does not cause interruption to business operations. The company is given breathing room during the process - an "automatic stay" generally prevents parties from taking legal action against the company or taking the company's assets. Most publicly-held companies prefer to file under Chapter 11 rather than Chapter 7 because they can still run their business and control the bankruptcy process. Chapter 11 provides a process for rehabilitating the business of the company.