Unlike traditional Chapter 11 “free fall” bankruptcy cases, some debtors enter bankruptcy with pre-packaged or pre-negotiated plans, offering major advantages such as reduced case length. These plans, largely drafted and agreed upon prior to filing, can expedite case resolution from over a year to mere weeks. Furthermore, these cases often provide greater certainty in outcome due to required buy-in from key creditor groups.

This article explores the differences between pre-packaged and pre-negotiated plans and highlights important issues for creditors. To access this article and read other insights from our Creditor’s Rights Toolkit, please click here.