A business entity which is the subject of a reorganization proceeding under Chapter 11 of the Bankruptcy Code. Unless and until a trustee is appointed, the Debtor-In-Possession operates its business and has all the powers of a trustee to manage the affairs of the business and administer the case.
A Chapter 11 debtor where no trustee is appointed. By definition a debtor-in-possession has all the power of a bankruptcy trustee.
In a Chapter-11 Bankruptcy case, the debtor usually remains in possession of its assets and assumes the duties of a trustee. The debtor-in-possession is a fiduciary for the creditors of the estate and owes them the highest duty of care and loyalty.
In a Chapter 11, the debtor retaining possession of the assets involved in the bankruptcy.
(U.S. bankruptcy based) The debtor in a Chapter 11 bankruptcy when acting in the capacity of the trustee administering the bankruptcy estate
the debtor which remains in control of operations; as opposed to having a trustee operate the company.