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Prepackaged Bankruptcy
(redirected from Pre-Packaged Bankruptcy)

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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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This pre-packaged bankruptcy is in an expedited Chapter 11 process which is keeping costs lower than what would have been the case in a more standard restructuring," said Lou Recano, Chief Executive Officer of DRC.
The studio, which also has a stake in the forthcoming 'Hobbit' movie, is going through a pre-packaged bankruptcy before Spyglass takes over.
The body will decide on the carrier's rescue plan on January 19, likely using a pre-packaged bankruptcy, the Asahi Shimbun reported on Friday.
 
 
 
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