AN EMPIRICAL-ANALYSIS OF PREPACKAGED BANKRUPTCIES

We provide comprehensive data on the attributes and outcomes of the re structuring process for a sample of 49 financially distressed firms th at restructured by means of a prepackaged bankruptcy. Our findings com plement previous research on out-of-court restructurings and tradition al Chapter 11 filings. By most measures, including the time spent in r eorganization, the direct fees as a percent of pre-distress assets, th e recovery rates by creditors, and the incidence of violations of abso lute priority of claimholders, we find that prepacks lie between out-o f-court restructurings and traditional Chapter 11 bankruptcies.