The economics of prepackaged bankruptcy

McConnell, J J and Servaes, H (1991) The economics of prepackaged bankruptcy. Journal of Applied Corporate Finance, 4 (2). pp. 1-4. ISSN 1078-1196

Abstract

A new kind of bankruptcy has emerged in the last few years. It can be thought of as a “hybrid” form—one that attempts to combine the advantages (and exclude the disadvantages) of the two customary methods of reorganizing troubled companies: workouts and bankruptcy.