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Simple English definitions for legal terms

fair-and-equitable requirement

Read a random definition: equivalence of advantages

A quick definition of fair-and-equitable requirement:

Fair-and-Equitable Requirement: A rule in bankruptcy that says if a company wants to force a plan on its creditors, the plan must be fair to everyone who is owed money. The court will look at the plan and decide if it treats each group of creditors fairly. The plan must also be accepted by at least one group of creditors and not unfairly favor one group over another. This is called a "cramdown" plan.

A more thorough explanation:

Definition: The fair-and-equitable requirement is a standard in bankruptcy law that requires a Chapter 11 plan to adequately provide for each class of interests that has not accepted the plan. This is necessary for a forced, nonconsensual Chapter 11 plan (also known as a "cramdown" plan) to be confirmed by the court.

Example: If a company files for bankruptcy and proposes a Chapter 11 plan that does not adequately provide for a certain class of creditors, such as bondholders, the court may not confirm the plan unless it meets the fair-and-equitable requirement. The court will consider the plan as a whole and weigh all the circumstances surrounding the treatment of each impaired class of interests to determine if it is fair and equitable.

The Chapter 11 cramdown plan must also be accepted by at least one impaired class of claims and not unfairly discriminate among impaired classes that have not accepted the plan.

Example: If a company proposes a Chapter 11 plan that is accepted by one class of creditors but unfairly discriminates against another class, such as giving preferential treatment to shareholders over bondholders, the court may not confirm the plan. The plan must treat all impaired classes fairly and equally.

Overall, the fair-and-equitable requirement is an important standard in bankruptcy law that ensures all classes of interests are adequately provided for in a Chapter 11 plan.

fair | fair and impartial jury

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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.
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