Which of the following statements is not true? Chapter 7 - The part of the US Bankruptcy Code describing the liquidation of a company after bankruptcy. Under Chapter 11, the bankruptcy court issues automatic stay to preserve the absolute priority rule. A benefit of securitization is to enhance liquidity by differentiating the cash flows and enable investors to purchase the flows that best suit their needs. A company that continues to operate while going through Chapter 11 bankruptcy proceedings is referred as debtor-in-possession (DIP)