Issue link: https://mbozikis.ufcontent.com/i/1422521
153 nonbankruptcy law governing the adequacy of disclosure in connection with such solicitation or (ii) in the absence of such law, the holder's acceptance or rejection was solicited after disclosure of adequate information as defined in the Bankruptcy Code. 11 U.S.C. ยง 1126(b). In this situation, the solicitation of votes takes place first and then the bankruptcy court reviews the disclosure provided and solicitation process undertaken and determines in hindsight if it satisfies Section 1126(b) of the Bankruptcy Code. This process helps to effectuate what is commonly referred to as a "pre-packaged" bankruptcy, in which the negotiation, documentation, disclosure, and solicitation of votes regarding a plan occur prior to the commencement of the bankruptcy case. 83 A variant of the "pre-packaged" bankruptcy case is the "pre-arranged" bankruptcy case, wherein the negotiation of the terms of a plan occurs pre-petition but the documentation, disclosure and solicitation of votes occur after the commencement of the bankruptcy case. Both "pre-packaged" and "pre-arranged" bankruptcy cases, which have become increasingly popular and common in recent years, are departures from the traditional Chapter 11 proceeding in which the debtor files for bankruptcy protection without yet having a restructuring agreement in place with its major stakeholders, and parties-in- interest engage with one another as part of the Chapter 11 proceeding. A major benefit to a "pre-packaged" bankruptcy case is that the time actually spent in bankruptcy is much shorter than in a bankruptcy case where no pre-petition negotiations with parties in interest has taken place. Sometimes such cases can be as short as a week or less (see In re FullBeauty Brands Holdings Corp., Case 83 The pre-packaged bankruptcy case is a variant of the "pre-arranged bankruptcy" wherein the debtor only files for bankruptcy protection after it has negotiated a restructuring with its major stakeholders, which may be documented in a "restructuring support agreement" or "plan support agreement" executed by the parties. Pre-packaged and pre-arranged bankruptcy cases are departures from the traditional Chapter 11 proceeding in which the debtor files for bankruptcy protection without yet having a restructuring agreement in place with its major stakeholders, and parties-in- interest engage with one another as part of the Chapter 11 proceeding.