There is a pre-packaged bankruptcy
plan that would pay ABL lenders, secured note holders and trade creditors in full and distribute 100% of the new common stock to unsecured note holders.
Dolan entered a Chapter 11 "pre-packaged bankruptcy
" in March 2014 and exited under the control of a private investment firm, Bayside Capital Inc.
Should they obtain sufficient support, either or both companies may seek to finalise the credit agreement amendments and complete the merger by means of a pre-packaged bankruptcy
, a move that will require shareholder approval.
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.
But how this form of "pre-packaged bankruptcy
" could be implemented in a world of widely different legal, political, and banking systems is unclear.
Prior to the heightened pace of the economic downturn's downward spiral in late 2008, most bankruptcy proceedings were considered somewhat open-ended, and relied far less on the prearranging of terms with key stakeholders prior to an official court filing--the pre-packaged bankruptcy
, or "pre-pack." S&P researchers suggest the filing company would typically embark on a "potentially lengthy" exploration of financing and operations alternatives, usually during an interest payment grace period or following a payment default, and try to restructure its operations and balance sheet via negotiating with creditor groups.
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.
MediaNews Group late Wednesday denied a report in an investors newsletter that it is arranging a pre-packaged bankruptcy
-- or readying any change in ownership of the Denver-based publisher controlled by William Dean Singleton and Richard B.