A prepack:
A)guarantees full payment to all creditors but lengthens the time span of the debt.
B)is the joint filing of both a bankruptcy filing and a creditor-approved reorganization plan.
C)protects the interests of both the current creditors and the existing shareholders.
D)applies only if a firm files under Chapter 7 of the bankruptcy code.
E)extends the time that a firm is protected by the bankruptcy process.

Question

Quizplus · Accepted Answer

A prepack is a pre-packaged bankruptcy where a company files for bankruptcy and simultaneously submits a reorganization plan that has already been approved by its creditors.

A Prepack