Understanding the situation at hand. An excerpt from the web:
In its most general sense, a pre-arranged bankruptcy typically refers to a restructuring that is:
• negotiated with representatives of the most significant constituencies that are expected to be impaired
(usually the senior lenders, bondholders or principal equity holders);
• agreed to by some or all of those representatives;
• memorialized in a written agreement setting forth all or most of the definitive terms of a plan of reorganization.
The most significant differences between the two approaches (pre-packaged and pre-arranged) are that in the pre-arranged plan context, the major constituencies usually enter into a lock-up agreement whereby they commit to support the plan process, but the OFFICIAL SOLICITATION of votes is not commenced until after the commencement of the Chapter 11 case itself. Pre-packaging or pre-arranging a Chapter 11 reorganization enables a debtor to minimize the negative impact on its ongoing business operations by combining many of the best aspects of out-of court workouts (eg, cost, efficiency, speed, flexibility and cooperation) with the binding effect and structure of a conventional bankruptcy.
All may not be lost, yet. Sounds like there will be some negotiations to deal with in the future.