The reorganization is thought to be the first time a large company will take advantage of a little-used technique called the prepackaged bankruptcy.

Generally, when companies are in financial trouble there are too many conflicts among the special interest groups to take advantage of prepackaged bankruptcies.

Such a plan, in which creditors' approval is obtained before the filing, is known as a prepackaged bankruptcy.

You can turn around a prepackaged bankruptcy within 32 hours, which is the record.

By the time a prepackaged bankruptcy is filed in court, a debtor and its creditors have already decided what each will settle for.

A new management team took over and put the company into a prepackaged bankruptcy, reaching agreements with creditors before filing a plan for reorganization.

Many say it was his idea to put the building into a prepackaged bankruptcy, which saved enormously on transfer taxes.

This kind of prearranged or prepackaged bankruptcy is not uncommon.

Also, in a "prepackaged bankruptcy," how would the final leverage or control of the federal government be established?

The plan also included the option of filing a prepackaged bankruptcy in the event enough noteholders didn't agree to the offer.