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.
Mentioned in ?
References in periodicals archive ?
The company will commence the solicitation of votes to accept or reject the plan, and commence its prepackaged bankruptcy case in the U.
A prepackaged bankruptcy is essentially a Chapter 11 plan that provides treatment of all classes of creditors on a consensual basis and is filed at the same time as the bankruptcy, Nathan further explained.
s prepackaged bankruptcy filed may be a leading indicator of further bankruptcies among other challenged high yield (HY) offshore drillers, according to Fitch Ratings.
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.
But now a prepackaged bankruptcy is being considered for the team in order to clear its books of liabilities and smooth the sale.