Prepackaged Plan Solicitation

Summary

This practice note discusses prepackaged bankruptcies and how to solicit acceptances to prepackaged plans of reorganization. In both traditional and prearranged bankruptcies, debtors solicit acceptances of their plans of reorganization during an ongoing Chapter 11 case and under strict bankruptcy court scrutiny. Debtors must convince the bankruptcy court that their planned solicitation contains adequate information before they can begin soliciting votes.