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52-688: The brainchild of Manuel "Manny" Fernandez , the Gavilan was unveiled at COMDEX/Spring '83 at the Georgia World Congress Center in early May 1983. It was unveiled a year after the Grid Compass , with which it shared several pioneering details, notably a clamshell design, in which the screen folds shut over the keyboard. The Gavilan, however, was more affordable than the Compass, at a list price of around US$ 4000. Unlike

104-431: A corporation , partnership or sole proprietorship , and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, though liquidation may also occur under Chapter 11; while Chapter 13 provides a reorganization process for the majority of private individuals. When a business is unable to service its debt or pay its creditors ,

156-403: A debtor in possession , and is subject to the oversight and jurisdiction of the court. A Chapter 11 bankruptcy will result in one of three outcomes for the debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a Chapter 11 debtor to reorganize, the debtor must file (and the court must confirm) a plan of reorganization. In effect, the plan is a compromise between

208-734: A 2005 study claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases". Cases involving more than US$ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding. The largest bankruptcy in history was of the US investment bank Lehman Brothers Holdings Inc., which listed $ 639 billion in assets as of its Chapter 11 filing in 2008. The 16 largest corporate bankruptcies as of December 13, 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as

260-403: A bankruptcy plan. The debtor in possession typically has the first opportunity to propose a plan during the period of exclusivity. This period allows the debtor 120 days from the date of filing for chapter 11 to propose a plan of reorganization before any other party in interest may propose a plan. If the debtor proposes a plan within the 120-day exclusivity period, a 180-day exclusivity period from

312-422: A disclosure statement must be approved by the bankruptcy court. Once the disclosure statement is approved, the plan proponent will solicit votes from the classes of creditors. Solicitation is the process by which creditors vote on the proposed confirmation plan. This process can be complicated if creditors fail or refuse to vote. In which case, the plan proponent might tailor his or her efforts in obtaining votes, or

364-521: A few thousand units of the Gavilan SC. BYTE in June 1983 called the Gavilan "a traveling professional's dream come true ... [it] promises to set new industry standards, not only for truly portable computers, but also for integration of applications software". Manuel Fernandez (businessman) Manuel "Manny" Fernandez (born April 22, 1946) is an American engineer and businessman. Fernandez

416-507: A higher price for divisions or other assets than a chapter 7 liquidation would be likely to achieve. Section 362(d) of the Bankruptcy Code allows the court to terminate, annul, or modify the continuation of the automatic stay as may be necessary or appropriate to balance the competing interests of the debtor, its estate, creditors, and other parties in interest and grants the bankruptcy court considerable flexibility to tailor relief to

468-407: A large role in many proceedings. Chapter 11 usually results in reorganization of the debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of

520-481: A pioneering touchpad -like pointing device, installed on a panel above the keyboard . It used static CMOS memory, and came with 64 kilobytes standard. Memory was expandable through plug-in modules, for which there were four slots available (each 32 KB "CapsuleRam" module cost US$ 350 (equivalent to $ 1,070 in 2023) and included a backup battery); these slots could also be used for software ROM cartridges. With standards for microfloppy drives still emerging, Gavilan

572-399: A plan cannot be confirmed, the court may either convert the case to a liquidation under chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. In order to proceed to the confirmation hearing,

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624-583: A process through which some of the debtor corporation's debts may be discharged. Determinations as to which debts are discharged, and how equity and other entitlements are distributed to various groups of investors, are often based on a valuation of the reorganized business. Bankruptcy valuation is often highly contentious because it is both subjective and important to case outcomes. The methods of valuation used in bankruptcy have changed over time, generally tracking methods used in investment banking, Delaware corporate law, and corporate and academic finance, but with

676-404: A profit. The trustee or debtor-in-possession normally rejects a contract or lease to transform damage claims arising from the nonperformance of those obligations into a prepetition claim. In some situations, rejection can also limit the damages that a contract counterparty can claim against the debtor. Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure

728-535: A secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by the automatic stay provisions of the Bankruptcy Code. In August 2019, the Small Business Reorganization Act of 2019 ("SBRA") added Subchapter V to Chapter 11 of

780-481: A significant time lag. Chapter 11 retains many of the features present in all, or most, bankruptcy proceedings in the United States. It provides additional tools for debtors as well. Most importantly, 11 U.S.C.   § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of

832-420: A spouse or parent. Further, creditors may file with the court seeking relief from the automatic stay. If the business is insolvent , its debts exceed its assets and the business is unable to pay debts as they come due, the bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of

884-565: A successful reorganization and retain control of the business and increase oversight and ensure a quick reorganization. A Subchapter V case contrasts from a traditional Chapter 11 in several key aspects: it is earmarked only for the "small business debtor" (as defined by the Bankruptcy Code), so, only a debtor can file a plan of reorganization . The SBRA requires the U.S. Trustee appoint a "subchapter V trustee" to every Subchapter V case to supervise and control estate funds, and facilitate

936-466: A tool for escaping labor contracts, usually 30–35% of an airline's operating cost. Every major US airline has filed for Chapter 11 since 2002. In the space of 2 years (2002–2004) US Airways filed for bankruptcy twice leaving the AFL–CIO , pilot unions and other airline employees claiming the rules of Chapter 11 have helped turn the United States into a corporatocracy . The trustee or debtor-in-possession

988-399: Is defined primarily by § 507 of the Bankruptcy Code ( 11 U.S.C.   § 507 ). As a general rule, administrative expenses (the actual, necessary expenses of preserving the bankruptcy estate, including expenses such as employee wages, and the cost of litigating the chapter 11 case) are paid first. Secured creditors —creditors who have a security interest , or collateral , in

1040-442: Is given the right, under § 365 of the Bankruptcy Code, subject to court approval, to assume or reject executory contracts and unexpired leases. The trustee or debtor-in-possession must assume or reject an executory contract in its entirety, unless some portion of it is severable. The trustee or debtor-in-possession normally assumes a contract or lease if it is needed to operate the reorganized business or if it can be assigned or sold at

1092-763: Is known for being the founder of the Gavilan Computer Corporation. This company was a pioneer, developing one of the first truly portable laptop computers in 1983, the Gavilan SC . Fernandez would later go on to become the CEO of Gartner and the head of SI Ventures. Most recently, he was named executive chairman of Sysco Corporation . Prior to founding SI Ventures, Manny was President, Chairman, and CEO (1991–2001) of Gartner, where he grew Gartner from $ 40 million in annual revenues to $ 900 million and market capitalization grew to over $ 4 billion, taking

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1144-469: Is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11. These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling

1196-511: The United States Trustee , can request the court convert the case into a liquidation under chapter 7, or appoint a trustee to manage the debtor's business. The court will grant a motion to convert to chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under chapter 11 (perhaps in a 363 sale), in which the pre-existing management may be able to help get

1248-482: The Bankruptcy Code. Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of the advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs. It seeks to increase the debtor's ability to negotiate

1300-513: The Compass, it was equipped with a floppy disk drive and had a built-in battery. An internal 300-baud modem was standard. A compact printer that attached to the rear of the machine was an option. The Gavilan was originally planned to ship with a proprietary, GUI -based operating system, called the Gavilan Operating Enivronment (GOE) and preinstalled with a suite of productivity applications, branded Capsuleware. GOE

1352-565: The board. While on the board he was successful at implementing a differential tuition program at the university. Chapter 11 Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code ) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy , is available to every business , whether organized as

1404-418: The business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as

1456-412: The business. Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business's earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through

1508-439: The case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that the reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation. In a Chapter 11 bankruptcy, the debtor corporation is typically recapitalized so that it emerges from bankruptcy with more equity and less debt,

1560-423: The chances of a successful outcome and sufficient debtor-in-possession financing may be unavailable during an economic recession. A preplanned, pre-agreed approach between the debtor and its creditors (sometimes called a pre-packaged bankruptcy ) may facilitate the desired result. A company undergoing Chapter 11 reorganization is effectively operating under the "protection" of the court until it emerges. An example

1612-632: The company missed its initial shipment deadline of December 1983, with the first several dozen units shipping instead in April 1984. Early units were fraught with technical issues, prompting more tweaks. Mass production and sales did not commence until June 1984. By this point, a major distributor of the Gavilan computer had filed for bankruptcy and was forced to pulled out of their deal with Gavilan. In late 1984, Gavilan Computer Corporation themselves declared Chapter 11 bankruptcy with cash flow problems. The company ceased operations in 1985, having only shipped

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1664-483: The company public in 1994. Manny continues to serve as Chairman Emeritus. Prior to Gartner, Manny was President and CEO of three technology-driven companies, including Dataquest - an information services company, Gavilan Computer corporation - a laptop computer manufacturer, and Zilog Incorporated - a publicly traded micro-possessor company. At Zilog, he was responsible for growing annual revenue from $ 5 million to $ 120 million in only three years. Previously, Mr. Fernandez

1716-497: The creditors' rights to enforce their security reach different conclusions. Chapter 11 cases dropped by 60% from 1991 to 2003. One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law, the study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However,

1768-404: The date of filing for chapter 11 is granted in order to allow the debtor to gain confirmation of the proposed plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. If at least one class of creditors objects and votes against

1820-444: The debtor does file a plan within the first 120 days, the exclusivity period is extended to 180 days after the order for relief for the debtor to seek acceptance of the plan by holders of claims and interests. If the judge approves the reorganization plan and the creditors all "agree", then the plan can be confirmed. §1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to "confirming" or "approving"

1872-433: The debtor will be able to pay most administrative and priority claims (priority claims over unsecured claims ) on the effective date. Like other forms of bankruptcy, petitions filed under chapter 11 invoke the automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes many post-petition debt collection efforts void or voidable. Under some circumstances, some creditors, or

1924-422: The debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before the next lower priority level may receive payment. Section 1110 ( 11 U.S.C.   § 1110 ) generally provides

1976-537: The development of a consensual plan. It also eliminates automatic appointment of an official committee of unsecured creditors and abolishes quarterly fees usually paid to the U.S. Trustee throughout the case. Most notably, Subchapter V allows the small business owner to retain their equity in the business so long as the reorganization plan does not discriminate unfairly and is fair and equitable with respect to each class of claims or interests. The reorganization and court process may take an inordinate amount of time, limiting

2028-410: The exigencies of the circumstances. Relief from the automatic stay is generally sought by motion and, if opposed, is treated as a contested matter under Bankruptcy Rule 9014. A party seeking relief from the automatic stay must also pay the filing fee required by 28 U.S.C.A. § 1930(b). In the new millennium, airlines have fallen under intense scrutiny for what many see as abusing Chapter 11 bankruptcy as

2080-428: The imposition of an automatic stay . While the automatic stay is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. An example of proceedings that are not necessarily stayed automatically are family law proceedings against

2132-441: The major stakeholders in the case, including the debtor and its creditors. Most Chapter 11 cases aim to confirm a plan, but that may not always be possible. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving the plan and making it binding on all parties in

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2184-426: The newly reorganized company. All creditors are entitled to be heard by the court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with bankruptcy laws. One controversy that has broken out in bankruptcy courts concerns the proper amount of disclosure that the court and other parties are entitled to receive from the members of the creditor's committees that play

2236-405: The plan and making it binding on all parties in the case. Most importantly, the bankruptcy court must find the plan (a) complies with applicable law, and (b) has been proposed in good faith. Furthermore, the court must determine whether the plan is "feasible, " in other words, the court must safeguard that confirming the plan will not yield to liquidation down the road. The plan must ensure that

2288-419: The plan is a compromise between the major stakeholders in the case, including, but not limited to the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible. Section 1121(b) of the Bankruptcy Code provides for an exclusivity period in which only the debtor may file a plan of reorganization. This period lasts 120 days after the date of the order for relief, and if

2340-412: The plan itself. The plan may be modified before confirmation, so long as the modified plan meets all the requirements of Chapter 11. A chapter 11 case typically results in one of three outcomes: a reorganization; a conversion into chapter 7 liquidation, or it is dismissed. In order for a chapter 11 debtor to reorganize, they must file (and the court must confirm) a plan of reorganization. Simply put,

2392-411: The plan, it may nonetheless be confirmed if the requirements of cramdown are met. In order to be confirmed over the creditors' objection, the plan must not discriminate against that class of creditors, and the plan must be found fair and equitable to that class. Upon confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan. If

2444-600: The year in 1998. Some of Manny's NYSE board seats include Stanley/Black & Decker , Sysco Corporation, Brunswick , and Flowers Foods . He has been recognized as one of the top 100 Directors by Directorship for his board leadership. Manny has also served in President George W. Bush President's Information Technology Advisory Committee (PITAC). He was appointed to the University of Florida Board of Trustees in 2001, and from (2003–2007) he served as chairman of

2496-533: Was also a Group Executive Vice President of Fairchild Semiconductor , where he managed roughly one-third of Fairchild's business at the time. He began his career in engineering positions with ITT and Harris Corporation . Manny holds a bachelor's degree in electrical engineering and post graduate in Solid State Physics from the University of Florida . Manny was also recognized as entrepreneur of

2548-483: Was chosen to work out the ergonomics , mechanics and overall appearance of the Gavilan. An extremely compact printer module was the result of a collaboration between Hall Design and C. Itoh of Japan. Additionally, several patentable features such as the unique display hinge and printer attachment mechanism were embodied in the design. The Gavilan sported an LCD display with an unusual resolution of 400×64 pixels (representing 8 lines by 80 columns of text). It included

2600-408: Was designed to accommodate both a 3.0-inch 320 KB microfloppy drive as well as a 3.5-inch floppy drive. Gavilan originally planned to avoid the retail segment entirely, instead providing the laptop through corporate fleet sellers. In November 1983, however, the company pivoted to providing the laptop to individuals through retail outlets. Owing to a rigorous overhaul of the design of the laptop,

2652-519: Was far smaller than competing IBM compatible portables, such as the Compaq Portable , which were the size of a portable sewing machine and weighed more than twice the Gavilan's 4 kg (9 lb), and unlike the Gavilan they could not run off batteries. Gavilan claimed the SC could run up to nine hours on its built-in nickel-cadmium batteries. Jack Hall, an award-winning industrial designer,

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2704-609: Was to be stored in the laptop's 48 KB of ROM and would have used a FORTH -like interpreter to generate very compact code . Both GOE and Capsuleware failed to come to fruition, however, and by November 1983 the company announced that they had switched to providing the laptop with MS-DOS . The machine's included software was a terminal program, MS-DOS, and MBasic (a version of the BASIC programming language ). An Office Pack of four applications— Sorcim SuperCalc and SuperWriter , and pfs:File and pfs:Report —was optional. It

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