Jones Quoted in Law360 on the Rise in Prepack Bankruptcy Filings

Stradling Partner Gregory Jones was quoted in the article, “Pricey Chapter 11 Process Fuels Rise in Prepack Filings,” written by Alex Wittenberg at Law360.  The article discusses the trend that companies that go bankrupt are increasingly opting to first negotiate restructuring deals out of court so they can enter Chapter 11 toting a turnaround plan already accepted by creditors, saving potentially hundreds of thousands of dollars in legal costs and dodging some of thestigma that bankruptcy attracts. The new guidelines include specific instructions for companies filing "rapid prepackaged"Chapter 11 cases. Jones explains that those new instructions will help bring valuable predictability to the prepack bankruptcy process. He shared, "Bankruptcy is all about momentum.  The longer you're in court, the more uncertainly there will be."