Prepetitioned Deals May Be On The Rise

Law360, New York (March 6, 2008, 12:00 AM EST) -- Faced with a weak economy and a tight credit market, more companies are likely to put together prepackaged and prearranged deals before they take the plunge into bankruptcy.

Lawyers said a surge in overall Chapter 11 filings is expected this year, and these prepetition arrangements could play a more critical role for companies that are trying to avoid the high costs and yearlong stretches in bankruptcy.

A BankruptcyData report said the month of February alone showed a spike of four prepackaged plans — which was the...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.