Cramdown is a bankruptcy court’s discretionary power to confirm or amend a reorganization plan, even if some creditors object. The court seeks to mediate the situation, but if not possible, initiates a crackdown to approve the best plan for all. If the company fails to comply, the court may take additional steps to protect creditors’ […]

Cramdown is a court’s discretionary power to uphold or modify a recovery plan despite objections from some creditors. The court mediates the situation to approve a plan in the best interests of all parties involved, and if the company fails to comply, further action may be taken. Cramdown is a slang term that refers to […]