Cram-down

{
  "id": "MLC-T-LAW-001382",
  "term": "Cram-down",
  "field": "Law",
  "definition": "Confirmation of a Chapter 11 reorganization plan over the objection of one or more impaired classes of creditors, allowed when at least one impaired class has accepted and the plan is fair and equitable and does not discriminate unfairly. For a dissenting secured class, fair and equitable means the creditors keep their liens and receive payments worth the secured amount, while for dissenting unsecured classes the absolute priority rule bars junior holders such as equity from receiving value first, as section 1129(b) of the Bankruptcy Code provides.",
  "url": "https://mlchart.com/terminology/law/cram-down/"
}