Larry Katz was quoted in the March 2, 2021 edition of Bloomberg News’ Bankruptcy Tracker feature discussing pre-packaged chapter 11 bankruptcy cases as an increasingly popular option to keep fees and time to a minimum during the bankruptcy process.
Pre-packaged bankruptcies have been used by several large retailers in the past year to prepare a restructuring plan in advance of court proceedings to allow for a quicker approval. Belk Inc. sought Chapter 11 protection during the week of February 23 and broke the record for the fastest pre-packaged filing ever with the judge approving the restructuring just 17 hours after the case commenced.
Katz noted the scrutiny, expense and time typically associated with the bankruptcy process in discussing the benefits of this strategy of early preparation. “If lenders are willing to work with you, you’re much better off doing a pre-pack or pre-arranged bankruptcy.”
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Stephanie A. Hood