This is the actual question: Prepare a plan for the firms bankruptcy. Be sure to address issues such as whether it would be better for Revco to file for formal bankruptcy instead of private restructuring, what the costs of the Revco bankruptcy will be, and how long you expect before Revco will emerge from bankruptcy.

Background information below:

Revco Drug Store filed for bankruptcy in July of 1988 and was one of the largest bankruptcies in US financial history as well as being one of the largest leveraged buyouts. As recently as 1984, Revco was operating approximately 2,000 stores in 30 states and was taken private in a leveraged buyout in 1986 which lead to a significant increase in Revcos debts from $44.7 million in 1985 to over $700 million in 1986 after the leveraged buyout. Eventually, its debt reached $1.3 billion and Revco announced that it could no longer make the interest payments on its debts.