Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

cramdown

Read a random definition: EPC

A quick definition of cramdown:

Term: CRAMDOWN

Definition: Cramdown is when a court approves a plan for a company that is going through bankruptcy, even if some creditors don't agree with it. The court can do this if at least one group of creditors has accepted the plan, it's fair to everyone, and doesn't treat anyone unfairly.

A more thorough explanation:

Definition: Court confirmation of a Chapter 11 bankruptcy plan despite the opposition of certain creditors.

Under the Bankruptcy Code, a court may confirm a plan even if it has not been accepted by all classes of creditors. This is called a cramdown. For a cramdown to be approved, the plan must meet certain requirements:

  1. It has been accepted by at least one impaired class
  2. It does not discriminate unfairly
  3. It is fair and equitable

For example, let's say a company is going bankrupt and owes money to two groups of creditors: bondholders and suppliers. The bondholders agree to the bankruptcy plan, but the suppliers do not. If the court determines that the plan is fair and equitable, it can still be approved and the suppliers will have to accept it, even if they don't like it. This is a cramdown.

Another example could be a real estate developer who wants to restructure their debt. The developer proposes a plan that is accepted by some creditors, but not all. If the court determines that the plan meets the requirements for a cramdown, it can still be approved and the developer can move forward with their restructuring.

craft union | crashworthiness doctrine

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
LSD+ is ad-free, with DMs, discounts, case briefs & more.