Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

fair-and-equitable requirement

Read a random definition: jus retractus

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

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
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.