If a company is near bankruptcy and requires protection from creditors (Chapter 11), it is likely unable to make payments on its debt obligations. If this is the case, the company will be liquidated and the value will be spread among its creditors. However, creditors will generally only receive a fraction of their original loans to the company. This is why creditors and the company will work together to recapitalize debt obligations so that the company is able to meet its obligations and continue operations, thus increasing the value that creditors will receive.
реорганізаційна облігація