pre-packaged bankruptcy

Pre-packaged bankruptcy is a financial process where a struggling company arranges for its reorganization plan before filing for bankruptcy. Essentially, the company negotiates and agrees on a restructuring deal with its creditors in advance. Once filed, the company quickly moves through the bankruptcy process, implementing the agreed-upon plan, which often helps it emerge healthier and more financially stable. This method can minimize disruption to operations, protect jobs, and maximize recovery for creditors by streamlining the bankruptcy process rather than going through lengthy negotiations afterward.