In HighPoint Resources Corporation, Case No. 21-10565-CSS (Bankr. D. Del. 2021), the U.S. Trustee’s office filed an objection (Dkt. No. 48) to the rapid confirmation of the Debtors’ plan of reorganization, among other things, indicating its concern regarding the recent trend of expedited pre-packaged plans because of their failure to provide interested parties with adequate notice.
In a typical bankruptcy, a debtor files for bankruptcy, notifies its creditors and other interested parties, prepares compressive schedules, proposes a plan of reorganization and solicits votes on such plan with a disclosure statement. This will often take anywhere from 6 to 20 months, and sometimes much longer.
By contrast, as discussed in our prior post entitled “Rocket Confirmations Gain Traction,” an expedited pre-packaged plan (a “Pre-Pack”) occurs when a debtor files its bankruptcy petition having already solicited votes on a confirmable plan, and a court approves the debtor’s plan within the first few weeks and sometimes, as in In re Belk Inc., Case No. 21-3060630 (Bankr. S.D. Tex. 2021), within the first 24 hours of the filing of the debtor’s bankruptcy petition. Continue reading “Expedited Pre-Packs: Balancing Cost-Saving with Adequacy of Notice”