Law360, New York (January 16, 2008, 12:00 AM ET) -- Prepackaged bankruptcy filings (colloquially referred to as “prepacks”) and other alternatives to traditional Chapter 11s appear to be on the rise.
While companies can utilize prepacks to achieve a rapid financial restructuring, they may forsake the opportunity to implement needed operational changes. As a result, more companies that emerge from Chapter 11 may need to refile, resulting in a phenomenon known as Chapter 22, which often entails liquidation.
Nevertheless, astute investors will find ways to benefit from these opportunities.
Benefits Of Prepacks
Ongoing turmoil in the...
Will "Prepacks" Lead To More Chapter 22s?
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