The goal of a Chapter 11 case is to confirm a plan. While plans can come in various shapes and sizes, including involving the sale of the business or the liquidation of the debtor, the pinnacle of achievement in Chapter 11 is confirming a plan of reorganization that leads to the debtor emerging from bankruptcy leaner and meaner and ready to operate its business post-emergence in fulfilling and enriching ways. Achieving such a result requires a lot of things to go right. The debtor has to withstand the initial shock and chaos that often accompanies a bankruptcy filing, navigate the rules and requirements of a debtor in bankruptcy, pay the administrative burden of a case, structure a plan that creditors and, perhaps, equity interest holders approve and are willing to vote on and procure from the court an order confirming that the plan does not get stayed or appealed. Assuming the debtor can do all of those things and more, the debtor is set to emerge from bankruptcy in an orderly, structured and agreeable way. The linchpin to all of that, though, is of course, money. The debtor needs money to fund its business, as well as other obligations arising from the plan. That money usually comes in the form of exit financing.
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