Page 26 - PRIAA Glossary

CHAPTER 11
A form of US bankruptcy proceeding that involves the reorganisation of the business affairs, assets and debts
of a bankrupt company. Otherwise known as bankruptcy protection, Chapter 11 is generally filed by corporations who may be able to restructure their business and emerge later as a going concern.
CHAPTER 15
A US bankruptcy proceeding catering to cross-border bankruptcies.
CHAPTER 7
A bankruptcy proceeding under US law where a company ceases trading. A trustee is appointed to liquidate the assets of the company in order to meet the claims of creditors.
CHARTER
A contract between a ship owner and charterer for the use of a vessel. Types of charters include voyage, or spot charter, time charter, or bareboat charter. Other marine contract forms include the consecutive voyage charter (CVC) and the contract of affreightment (COA).
CHARTER PARTY
A contract under which the owner of a vessel (aircraft or ship) leases its vessel for a fixed period of time or a set number of voyages. The party that leases the vessel is called the charterer. Normally, the vessel owner retains rights of possession and control while the charterer has the right to choose the ports of call.
CHEAPEST TO DELIVER
The security which is delivered upon the physical settlement of a derivative trade at the lowest cost to the deliverer. This is relevant only when a slightly different delivery is possible in the contract.
CHICAGO MERCANTILE EXCHANGE (CME)
The world’s second-largest exchange for futures and options on futures and the largest in the United States. Products
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