One popular method in Chapter 11 cases is called a(n)__________ bankruptcy,in which the company solicits votes on its plan of reorganization prior to filing bankruptcy.

Question

Quizplus · Accepted Answer

The method described in the question is a prepackaged bankruptcy, which involves soliciting votes on a plan of reorganization prior to filing for bankruptcy. This allows the process to move more quickly and smoothly once the bankruptcy is filed. Cramdown, workout, and confirmation are different methods used in the bankruptcy process.

One Popular Method in Chapter 11 Cases Is Called A(n)__________