Prepackaged Bankruptcy
When acompany prepares a reorganization plan that is negotiated and voted on by creditors and shareholders before the company actually files for bankruptcy.
Investopedia Commentary
The idea behind a pre-packaged bankruptcy plan is to shorten and simplify the bankruptcy process in order to save the company money in legal fees, and hopefully generate more for the creditors.
Related Links
An Overview Of Corporate Bankruptcy
See also: Absolute Priority, Bankruptcy, Bankruptcy Risk, Chapter 11, Chapter 7, Discharge in Bankruptcy
prepackaged bankruptcy