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Car industry in crisis

Q&A: Chapter 11 filing and General Motors

By Bernard Simon in Detroit

Published: May 31 2009 16:59 | Last updated: May 31 2009 16:59

What is the purpose of a Chapter 11 filing?
Chapter 11 of the US bankruptcy code is designed to allow an ailing company to reorganise its operations and balance sheet under court protection from creditors.

The company typically remains in business but every important decision requires court approval.

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