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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Prepackaged bankruptcy  

Definition 1.

A bankruptcy in which a debtor and its creditors pre-negotiate a plan of reorganization and then file it along with the bankruptcy petition.
 

Definition 2.

When acompany prepares a reorganization plan that is negotiated and voted on by creditors and shareholders before the company actually files for bankruptcy.
 
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