prepackaged 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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While there has been a slowdown in bankruptcy filings in recent years, there is still activity in the restructuring space as companies are starting to deal with their troubles earlier, in the hopes of resolving their issues either outside of court or through a quick prepackaged bankruptcy filing.
Part 4 explains how corporations can recover from financial distress; this section offers several chapters on bankruptcy, as well as nonbankruptcy exchange offers and prepackaged bankruptcy cases.
Blank Rome Real Estate and Financial Services Department chair Martin Luskin led the team that represented the owners of 885 Third Avenue, the iconic New York City office building known as the "Lipstick Building, in a prepackaged bankruptcy that resulted in the restructuring of debt and equity positions.
Next, a negative sign on PREPACKAGE is expected because a prepackaged bankruptcy should have a more adverse effect on industry rivals.
Under a new prepackaged bankruptcy deal, the company's bondholders would get stock in the new business.
They are negotiating a restructuring plan for the studio that could include a prepackaged bankruptcy option.
NEW YORK: Ambac Financial Group Inc, the bond insurer whose toxic assets were seized by Wisconsin state regulators in March, said it could default on its loan obligations and was still considering filing a prepackaged bankruptcy.
We will be following developments very closely with an eye toward protecting taxpayers C* but as the firm's disclosure on the prepackaged bankruptcy makes clear C* recovery to preferred and common equity holders will be minimal," said Treasury spokesman Andrew Williams.
CIT Group Inc is planning to offer its unsecured debt holders two options: either exchange their debt voluntarily, or face a prepackaged bankruptcy, sources close to the situation said on Wednesday.
He was responding to questions about a Bloomberg report that Obama had determined that a prepackaged bankruptcy was the best way for GM to restructure and become competitive, which knocked U.
Key Colony goes on to say that as a result of those public statements, "there was no legitimate reason for Charter to create a crisis in late 2008 and early 2009 with the note holders that culminated in the prepackaged bankruptcy.
Rodriguez doesn't anticipate any disruption in customer service as a result of the prepackaged bankruptcy filing.