Non-profit charitable organizations are also able to take advantage of the workout provisions of the federal bankruptcy law. For example, a children's museum in Pennsylvania, called the Please Touch Museum, raised new donations and compromised several debts so that it is now ready to emerge from bankruptcy. The museum had incurred a $60 million debt that it could not pay when it moved from Center City Philadelphia to Fairmont Park in 2008. It filed a Chapter 11 in September and recently received the approval of the bankruptcy judge to compromise the bulk of its debt for a payment of $11.25 million.
Companies in Pennsylvania who want to protect their businesses from looming losses sometimes opt for the reorganization process of Chapter 11 bankruptcy. Sports Authority -- a chain of retailers with over 460 stores across the country -- has recently filed for Chapter 11 bankruptcy. This followed the company's disclosure last month that it had failed to pay a $20 million debt.