Debtor-in-possession

[ { "value": "Debtor-in-possession is a unique status afforded to a debtor who retains possession and control of their assets while undergoing reorganization under bankruptcy laws. Typically associated with Chapter 11 bankruptcy, this status allows the debtor to continue operating the business and manage day-to-day affairs without being placed into the hands of a trustee. This can include paying employees, implementing repairs, and making business decisions essential to running the company. The debtor-in-possession is still accountable to creditors and must adhere to court-approved procedures to safeguard the interests of all parties involved. This setup aims to help the company restructure efficiently, maximize value, and hopefully regain financial stability. } ]