Chapter 11 isn't nonsense
boofta:
I think you're being unfair in describing Chapter 11 of the US bankruptcy code as nonsense.
IMHO, it's a more sensible version of the UK's "adminstration". It's more sensible in that it allows the management of the company to re-structure it (under legal supervision) to prevent bankruptcy.
With UK administration, the directors don't run the business with the object of recovery, but an administrator (who may know precisely zilch about the business/industry) does. Administration usually ends in liquidation. Chapter 11, more often than not, leads to recovery of the enterprise.
You may feel that Chapter 11 has been abused by companies that frankly should not survive -- and you may well be right.
But Chapter 11 is a sensible "intensive care" mechanism.