prepackaged bankruptcy

Prepackaged bankruptcy is a process where a company prepares a reorganization plan and negotiates agreements with creditors before officially filing for bankruptcy. This proactive approach allows the business to streamline its financial troubles and minimize disruption. Once filed, the plan is often approved quickly, allowing the company to emerge from bankruptcy faster. This method can be advantageous for both the company and its creditors, as it provides a clear path to recovery while maintaining more control over the restructuring process than a traditional bankruptcy.