"The plan - confirmation (cramdown)" [2019] ELECD 2096; in Lubben, Stephen (ed), "American Business Bankruptcy" (Edward Elgar Publishing, 2019) 147

Book Title: American Business Bankruptcy

Editor(s): Lubben, Stephen

Publisher: Edward Elgar Publishing

Section: Chapter 17

Section Title: The plan - confirmation (cramdown)

Number of pages: 10

Abstract/Description:

Cramdown is the process for approving a plan that has some support, but which has been rejected by one or more classes. The plan must comply with all elements of section 1129(a), except the requirement that all impaired classes accept. This means that at least one impaired class must accept the plan, even if all other impaired classes have rejected the plan. In addition, Bankruptcy Code section 1129(b) requires that the plan be “fair and equitable” as to each dissenting class, and also that the plan does not “unfairly discriminate” against a dissenting class.