prepackaged bankruptcy

(redirected from Pre-Packaged Bankruptcy)

Prepackaged bankruptcy

A bankruptcy in which a debtor and its creditors pre-negotiate a plan of reorganization and then file it along with the bankruptcy petition.

Prepackaged Bankruptcy

A situation whereby a company and its creditors agree on the terms of bankruptcy before it is filed with bankruptcy court. That is, the company and its creditors agree how and how much each creditor will be repaid and the terms of repayment. All parties, including shareholders if applicable, must agree to the prepackaged bankruptcy before it takes effect. A prepackaged bankruptcy makes it easier and less expensive for all parties when a company files Chapter 11 and reorganizes.

prepackaged bankruptcy

A Chapter 11 bankruptcy settlement in which the reorganization and main provisions have been agreed to by creditors and stockholders in advance of the filing.
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11: After less than 60 days in a pre-packaged bankruptcy, GateHouse Media Inc.
We believe JEC has purposefully driven down the value of KITD and is either: (a) working with an affiliate or entity otherwise "friendly" to JEC to complete a presumptively arms-length transaction with which JEC could be subsequently involved, (b) planning to bid immediately after an artificially low-priced third party transaction is announced-which results in JEC's own standstill being released, or (c) planning a pre-arranged or pre-packaged bankruptcy filing in which JEC or a JEC affiliate would be the stalking horse bidder for the assets of the Company or otherwise materially benefit.
Typically a company will work out a pre-packaged bankruptcy resulting in the company's value plummeting.
The studio, which also has a stake in the forthcoming 'Hobbit' movie, is going through a pre-packaged bankruptcy before Spyglass takes over.
Lenders have been pushing for a pre-packaged bankruptcy in exchange for an extension on debt and interest payments.
Lynn said he would soon permit mail-in balloting by some classes of creditors on the pre-packaged bankruptcy plan that includes the $575 million sale to the Greenberg-Ryan group.
Morris reported that the holders of about 93 percent of its debt agreed to the pre-packaged bankruptcy that would reduce its overall indebtedness from $415 million to $126 million.
On the other hand, it can also be argued that the federal government prepared Americans for these bankruptcies over the first half of the year and then provided something of a pre-packaged bankruptcy with government financing.
The US industrial icon enters the process aiming for a so-called pre-packaged bankruptcy with billions in government financing and agreements in place to cut labour costs, swap much of its debt for equity and reduce its liabilities by 50 per cent.
GM should get government help with financing in Chapter 11 once it restructures in a pre-packaged bankruptcy.
If the auto companies, for example, want to get taxpayer money, they should go through a pre-packaged bankruptcy to clean up their problems.
He said without immediate financial help, the company may lack sufficient capital to continue operating and that Chrysler looked at a pre-packaged bankruptcy and other alternatives before deciding to apply for the federal funds.