Prearranged Chapter 11

The hallmark of a prearranged chapter 11 is that it is one in which the debtor enters bankruptcy after having negotiated the terms of a plan with its major stakeholders. Such agreement is commonly memorialized in a document commonly referred to as a “lock-up” or “plan-support,” agreement. Read “A Primer on Plan Support Agreements & Restructuring Support Agreements” for more information about such agreements.

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