[FrobeniusTwist]

The main "pro" of a successful Chapter 11 is that a viable but struggling business is saved (along with the jobs provided by the business), although the investors in the business may see their investment wiped out. As mentioned elsewhere, being able to pick and chose which leases to assume and which to reject is one of the principal benefits. The main "con" is that unsecured creditors don't necessarily get the deal they agreed to, but (a) the claims of even unsecured creditors are prioritized over equity, and (b) bankruptcy is a known risk for unsecured creditors, and is presumably priced into the debt in the first place. Also, while a Chapter 11 is not going to help a company looking for cheap debt, there's a whole industry of providers of credit to Chapter 11 debtors. As long as there is a viable plan to reorganize, the company should be able to find financing or otherwise emerge with a functioning business.