Number of Prepackaged Bankruptcy Filings Tripled in 2009

Number of Prepackaged Bankruptcy Filings Tripled in 2009

 
According to an analysis from BankruptcyData.com, the number of prepackaged bankruptcy filings has tripled in the past year. There were 30 such filings in 2009, as compared to only 10 in 2008.
 
In a prepackaged bankruptcy, the debtors and certain required majorities of each class of creditors and equity holders accept a reorganization plan before the company files for Chapter 11 protection. The advantages of prepackaged bankruptcies include more certainty in the outcome, less interruption to business, and swifter court proceedings.
 
According to BankruptcyData.com, the 30 prepackaged bankruptcies in 2009, led by companies such as CIT Group Inc, Charter Communications Inc, Lear Corp and Six Flags Inc, represent $124 billion in assets.
 
 
To view or download a free excerpt from the Collier Business Workout Guide, please click the link at the top of the post.

Attachment: http://www.lexisnexis.com/documents/pdf/20091208011940_large.pdf