Prepackaged Plans

Prepackaged plans, often used in bankruptcy cases, are agreements between a business and its creditors that outline a strategy for restructuring debts before formally filing for bankruptcy. These plans are negotiated in advance, allowing the company to gain court approval quickly, minimizing disruption to operations. This approach helps ensure a smoother transition to financial stability while providing creditors with a clearer understanding of repayment options. Essentially, it's a structured way for troubled companies to reorganize and potentially return to profitability while addressing their financial obligations efficiently.