One of our customers, a regional retail store chain filed a "prepackaged" Chapter 11 bankruptcy. Can you explain, in layman's terms, this concept of a prepackaged bankruptcy?

Answer: This involves a situation in which a company preparing to file Chapter 11 reorganization negotiates with its creditors and agrees on a Plan before it actually files for bankruptcy protection. The goals are: To shorten the amount of time the company is in bankruptcy; to simplify the bankruptcy process; to reduce costs; And to reduce legal fees.