Prepackaged and Prenegotiated Chapter 11 Reorganizations: Debtor and Creditor Strategies

Prepacks can be significantly more efficient than filing a typical Chapter 11 case and negotiating a plan after filing. Debtors must carefully prepare and execute prepack strategies to achieve the desired time and cost savings without violating the Bankruptcy Code provisions concerning vote solicitation.

Like pre-packs, prenegotiated restructuring plans minimize the duration and expense of Chapter 11 cases. Prenegotiated plans might be a viable alternative if the prepack option is not achievable for the debtor.

Debtors and creditors often enter into restructuring support agreements or "lock-up" agreements regarding the plan. These agreements are the road map for the debtor's plan to exit Chapter 11 and are often contentiously negotiated.

Listen as our authoritative panel of restructuring attorneys delves into the benefits and risks for both debtors and creditors of prepackaged and prenegotiated plans to accomplish a Chapter 11 reorganization. The panel will offer strategies for all constituents in negotiating these plans. The panel will focus on issues currently heavily contested in today's environment, including restructuring support agreements, valuation, and credit bidding.

I. Overview of prepacks and prenegotiated bankruptcy plans

A. When each is appropriate

B. Jurisdiction and venue issues

C. Differences between the plans

II. Creditor side strategies

III. Debtor side strategies

IV. Current issues that are heavily contested

A. Restructuring support agreements

B. Valuation

C. Credit bidding

D. Indenture trustees

The panel will review these and other key issues:

• Differences between prepackaged and prenegotiated bankruptcy plans
• Benefits and disadvantages of prepackaged and prenegotiated bankruptcies for lenders and debtors
• Negotiating restructuring support agreements