Debt-ridden cos. turning to prepacks; quickie bankruptcies are an effort to tidy balance sheets

Article Abstract:

Bankruptcy experts say the speeded-up version of Chapter 11 reorganizations has returned, with high-profile companies using prepackaged bankruptcy petitions or preparing them across the US. A prepackaged Chapter 11 filing lets a company approach bondholders as potential bankruptcy creditors and persuade them to convert company debt into shares of stock as part of a reorganization. Bondholders vote to support the reorganization plan if they are convinced and company officials file both vote results and the plan as part of the company's initial Chapter 11 petition.

United States, Management, Corporate reorganizations, Liquidation

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Lawsuit is dismissed on security grounds

Article Abstract:

The US District Court has dismissed Maxwell v First National Bank of Maryland, a suit by a former bank executive claiming his discharge was due to misgivings about CIA accounts financing arms deals. The judge rules that he could not force the government or bank to turn over documents detailing the CIA's relationship with the bank because of the official secrets privilege.

Cases, Finance, Arms smuggling, United States. Central Intelligence Agency, Official secrets

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