prepack
A prepack, short for prepackaged bankruptcy, is a form of bankruptcy filing in which a debtor negotiates a proposed reorganization plan with its major creditors before submitting a petition to the court. The plan is designed to have broad creditor support, allowing the debtor to seek court approval and emerge from bankruptcy more quickly than in a traditional Chapter 11 process.
The term is most commonly used in the United States under Chapter 11 of the Bankruptcy Code.
Process typically involves several steps: negotiating with key creditor groups (such as secured lenders and major
Advantages of a prepack include faster resolution, lower administrative costs, and greater predictability for stakeholders. Critics
In practice, the prepack model aims to streamline reorganization while preserving value and enabling a quicker