Prepackaged Bankruptcy Law and Legal Definition
Prepackaged bankruptcy refers to a plan for financial reorganization that a company prepares in cooperation with its creditors that will take effect once the company enters bankruptcy. A Prepackaged Bankruptcy is basically a Chapter 11 bankruptcy filing. It aims to shorten and simplify the bankruptcy process in order to save the company money in legal and accounting fees, as well as the amount of time spent in bankruptcy protection.
