Term used to describe a second Chapter 11 filing by a debtor that has been through a Chapter 11 case previously. The existence of a “Chapter 22” is especially prevalent among large debtors and is thought by some to be the consequence of the bankruptcy courts essentially deferring to the debtor and its advisors in the first bankruptcy case, leaving the real job of reorganization unfinished. Chapter 33 refers to the third Chapter 11, Chapter 44 the fourth, etc.
Synonyms: Dracula’s Daughters, The Undead (to grant them eternal rest the lender’s lawyer must devise a creditors’ rights equivalent of a stake in the heart, garlic in the mouth, and a crucifix on the forehead).
See also Lopucki.