Abstract: In this chapter, we examine how the rise of private equity has reshaped the dynamics of Chapter 11 reorganizations. We argue that modern bankruptcy increasingly involves “team breakup” strategies, where favored creditor coalitions—often majority secured lenders—are granted exclusive financing or settlement opportunities that disadvantage minority creditors. This evolution reflects changes in capital structures, where secured creditors dominate and the fulcrum security has moved up the priority ladder. We trace how these strategies exploit weak team-protection rules for secured creditors, undermine market testing, and create new agency costs that courts struggle to police. We illustrate our argument with case studies of Peabody Energy, Serta Simmons, and Nine West. These developments challenge longstanding assumptions about creditor governance and raise questions about fairness, efficiency, and judicial oversight in modern bankruptcy practice.