Bankruptcy Reorganization Plans and Cram Downs

Description

As corporate bankruptcies continue unabated and a wave of commercial real estate bankruptcies are looming, the issue of plan reorganizations and cram downs are at the forefront of many bankruptcy battles. Never before have the stakes been so high in Chapter 11 bankruptcies.

Debtors have high hurdles to have a plan approved through cram down. There are various strategies that creditors and lenders can employ to thwart the threat.

Practitioners representing both debtors and lenders must understand the complexities of both the bankruptcy plan confirmation process and cram down procedures to strategize creatively and effectively to protect clients' interests.

Listen as our authoritative panel of bankruptcy attorneys analyzes the complex rules for plan confirmation and plan cram down. The panel will outline legal strategies for debtors and creditors to best advance and protect their respective positions.

Outline

1. Overview of plan confirmation and cram down provisions
   1. Plan requirements
   2. Voting rules
   3. Absolute priority rule
   4. Fair and equitable
   5. Feasibility of plan
   6. Burden of debtor
2. Cram down strategies and objections
   1. New value exception to the absolute priority rule
   2. Section 1111(b)(2) election for undersecured creditors
   3. Secured creditor receives indubitable value
   4. Designation of classes of creditors
   5. Claims purchasing
   6. Cram down interest rates post-Till
3. Unique issues for real estate bankruptcies
   1. Commercial single asset real estate cases
   2. Authority of borrower to file — SPE’s
   3. Springing recourse guaranties
   4. Second-lien loans
   5. Impact of General Growth Properties case

Benefits

The panel will review these and other key questions:

• What factors determine whether the debtor's reorganization plan is feasible?
• What are the pitfalls in purchasing claims of other unsecured creditors to defeat plan confirmation?
• How have the courts applied the cram down interest rate post-Till to Chapter 11 cases? And, how will the current economy affect this analysis?

CLE Credit

Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

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