ABI Bankruptcy Conference: Liquidations trump prepacks
E-mailComplicated debt structures have led to a decrease (and maybe extinction?) of prepackaged Chapter 11 filings and, at the same time, more bankruptcy court liquidations, said a panel at the American Bankruptcy Institute's New York City Conference Monday.
The panel was discussing whether debtors today are better off selling assets in an auction under Section 363 of the federal bankruptcy code or filing a reorganization plan.
"Chapter 11 is inefficient, expensive and a last resort," said Randy Lay at Buccino & Associates Inc. "The difficulty today is so many folks own a slice of the company's liabilities that you don't know who to talk to."
