Chapter 11 will temporarily shield the company from creditors' legal claims. Debts can be paid off in cash, promissory notes, stocks or other ways.
Shareholders are at the bottom of the list.
Lawyers and court costs are paid first. Secured creditors, such as banks that lent money for plants or equipment and mortgage or revenue bondholders, but only to the extent of their secured collateral. Unsecured creditors such as vendors, suppliers and tradespeople who supplied goods and services before the bankruptcy and who are still owed money.