Chapter 11 Bankruptcy
Also called: Chapter 11, reorganisation, debtor in possession
Chapter 11 is US reorganisation: the company keeps operating under existing management as debtor in possession, while an automatic stay freezes creditors and a plan is negotiated. Value is distributed by the absolute priority rule — senior creditors made whole before junior ones, and shareholders usually wiped out. Debtor-in-possession financing ranks ahead of everything, which is why it's available at all.