Bankruptcy cases are getting shorter, says Brian Davidoff, a partner with Los Angeles law firm Greenberg Glusker Fields Claman & Machtinger LLP, who handled the bankruptcy case of Rhythm & Hues Studios Inc., the effects studio that worked on the Oscar-winning film "Life of Pi." The studio filed for bankruptcy protection on Feb. 11 and was sold to an affiliate of Prana Studios on March 29. The shorter-case trend is caused by both the high cost of continuing a bankruptcy proceeding and the desire to sell through the 363 bankruptcy sale process, which includes marketing, approval of an initial bidder, auction and sale approval, quickly. Some companies may start the restructuring process ahead of the filing, which could make the bankruptcy case move even more quickly, especially if the company has already begun the marketing process, Davidoff says.
Have the lengths of bankruptcy cases been decreasing?