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Simple English definitions for legal terms

fair-and-equitable requirement

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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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triplethread
10:27
but snow we have the same stats. you'll be fine. i promise. if im this confident you should be too
Dkk
10:27
Only tiktok I will share cus I stay off that site.
I am sorry if you like it, but TikTok is fucking awful
LSDFan
10:28
tiktok is great
triplethread
10:28
i lub tik tok and reddit and instantgram
Dkk
10:29
Nah, lol I hate it @texas. I remember when it was music.ly too and you used to have music.ly cringe compilations.
babycat
10:29
I do not have tiktok either because it makes my brain unhappy
10:29
how come i didnt get fordham AGAIN
Yeah, shit is awful. I have friends who spend hours a day on it
m10
10:30
Sorry to hear @Eggan
BulbasaurNoLikeCardio
10:30
I think tik tok is evil and coming from a national defense background, working in PSYOP and in the intelligence community I can promise it is.
glovediedthisishismom
10:30
5318008 now look at it upside down ;)
snow
10:31
tik tok and youtube reals has fried my brain
babycat
10:31
@glovediedthisishismom: boobies!!!
so off topic but dude eggan the weather here in nyc is insane
babycat
10:31
@BulbasaurNoLikeCardio: I wonder if you know my local psyops guy
m10
10:32
@BulbasaurNoLikeCardio: Yeah but like half the general officers are compromised so we might as well just give this country to China already. The head of the JAG corps used to tell us how much he loved Tiktok and he was a 1 star. These people should be court martialed. I hope Trump follows through on that promise the most.
it was 80 degrees three days ago and now it's like pouring rain sleet and wind
babycat
10:32
@jackfrost11770: we all living the same weather. I’m abt to go to the gym
babycat
10:32
I’m listening to car seat headrest
it's the worst when the weather is this shit and there isn't even any snow like at least let it be aesthetic (although snow in nyc is the opposite of that)
snow
10:33
india ass band
10:33
checking in on Wake Forest. Y'all heard anything?
LSDFan
10:34
@m10 are you FLEP
m10
10:34
@LSDFan: nah lol, I am just using my GI Bill. I do not feel like going back.
LSDFan
10:34
good call
BulbasaurNoLikeCardio
10:34
@m10: 110% agree, china has a truly amazing HUMINT network and espionage skills that much of our military is infiltrated or committing willful negligence of duty in prevent and protection. @babycat: PSYOP is pretty small on the AD side but I left the community to go play with Apaches and drones in 2018/19
10:35
Daily check in , stay chillin
10:35
anyone touring hls today?
10:35
Same @m10
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