Entries tagged "Bally Total Fitness"
The stigma associated with a long Chapter 11 stay often leads debtors toward prenegotiated and prepackaged reorganization plans, offering them the chance to get in and out of bankruptcy in a matter of months. But there's a flip side to these types of plans. Critics of such plans often say that the reorganizing company ultimately ignores its operational issues and often could be right back under the bankruptcy court's thumb again. Case in point: Bally Total Fitness Corp. ...
Prepackaged Chapter 11 bankruptcy plans can be a misnomer, as the situation surrounding bankrupt relocation company Sirva Inc. attests. So-called prepacks sometimes get confused with their cousins, prenegotiated and prearranged Chapter 11 plans. And things have gotten increasingly byzantine ever since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which has led to speedier bankruptcies. Debtors have become wary of the new code's exclusivity cap and running the risk of testing many of its other amendments. The result has been more Section 363 sales and simply more attempts to get in and out of Chapter 11 in a...
