Journal of Financial Economics Vol. 40 No. 1 1996
An empirical analysis of prepackaged bankruptcies
Abstract
We provide comprehensive data on the attributes and outcomes of the restructuring process for a sample of 49 financially distressed firms that restructured by means a prepackaged bankruptcy. Our findings complement previous research on out-of-court restructurings and traditional Chapter 11 filings. By most measures, including the time spent in reorganization, the direct fees as a percent of pre-distress assets, the recovery rates by creditors, and the incidence of violation of absolute priority of claimholders, we find that prepacks lie between out-of-court restructurings and traditional Chapter 11 bankruptcies.
- DOI
- 10.1016/0304-405x(95)00837-5
- Volume
- 40
- Issue
- 1
- Pages
- 135-162
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref