Prepackaged Plan of Reorganization

A prepackaged plan of reorganization is a bankruptcy strategy where a company prepares its reorganization plan in advance, often with input from key stakeholders, before officially filing for bankruptcy. Once the company files, the plan is quickly confirmed by the court, allowing the company to reorganize and continue operations with minimal disruption. This approach reduces uncertainty, saves money, and speeds up the restructuring process by having most of the agreement and plans in place beforehand. It’s often used by companies aiming to streamline their recovery and minimize the time spent in bankruptcy proceedings.