Prepackaged Bankruptcies: Opportunity or Trap?

• Overview

With the cost of bankruptcies soaring prepackaged bankruptcies have become increasingly popular as a fast, cost effective method to achieve the advantages of various bankruptcy protections while not being mired in protracted proceedings whose outcome is often uncertain. However the road to a prepackaged bankruptcy is not without its pitfalls and attorneys, creditors and investors need to know the requirements, negotiating strategies and current developments in this fast changing area to reap the maximum benefits of this form of strategic financial and operational restructuring.

Authors

Dennis J. Drebsky, Nixon Peabody LLP
Daniel W. Sklar, P.C., Nixon Peabody LLP

Agenda

Elements of Prepackaged Bankruptcies

Prepackaged vs. Pre-Negotiated Bankruptcies or Out-of-Court Restructurings

Advantages and Pitfalls

Strategies for Debtors and Creditors

Elements of Plan Support and Lock up Agreements

Pre-Packs as Facilitating Section 363 Sales

Claims Trading as Impacting the Ability To Effectuate a Pre-Pack Bankruptcy

Current Issues in Pre-Packs - The Automotive Cases