Bankruptcy Code Section 1111(b)(2) Elections, Feasibility, Payment Terms, and Cramdown Interest Rate Complexities
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss how the Section 1111(b)(2) election allows secured and undersecured creditors to command a higher payout and preserve any future increases in the value of its collateral. The panel will discuss the increasing use of waivers of the right to object to Section 1111(b)(2) in debtor-in-possession financing, how the election affects cramdown strategies, the intersection of Section 1111(b)(2) and Subchapter V and small business cases, cramdown interest rates, and how rates inform cramdown strategies.
- Scope of the 1111(b)(2) election
- Mechanics and timing of the election
- Strategies for secured lenders in considering the election
- Traditional Chapter 11
- Subchapter V cases
- Impact of the election on the debtor's cramdown plan
- Impact of cramdown interest rates on cramdown strategies
The panel will review these and other vital questions:
- Does the Section 1111(b) election mean different things in Subchapter V than in traditional Chapter 11 cases?
- What opportunities does the 1111(b)(2) election present for secured lenders facing cramdown by the property owner?
- What must real estate owners understand about the 1111(b) election to determine whether a lender's election can undermine the owner's cramdown objectives?
- What impact does the cramdown interest rate play in determining the value of the lender's 1111(b)(2) election claim?
Daniel M. Pereira
Stradley Ronon Stevens & Young
Mr. Pereira concentrates his practice on bankruptcy, insolvency and related matters. advises clients on a... | Read More
Mr. Pereira concentrates his practice on bankruptcy, insolvency and related matters. advises clients on a wide array of issues, including both transactional and litigation matters. Although Mr. Pereira primarily focuses his practice on representing creditors, he also has experience representing debtors and other interested parties, particularly foreign debtors, in cross-border insolvency and restructuring proceedings. Among other clients, Mr. Pereira has represented banks and other lending institutions, trade vendors, service providers, commercial landlords and tort claimants. He has appeared in numerous state and federal courts, pursuing, among other things, loan enforcement actions, receiverships and commercial foreclosures, defending and prosecuting preference and fraudulent transfer claims, and handling various other commercial litigation matters in addition to handling numerous out-of-court workouts.Close
White and Williams
Mr. Powers advises clients in all aspects of complex commercial insolvency and restructuring under chapters 7 and 11,... | Read More
Mr. Powers advises clients in all aspects of complex commercial insolvency and restructuring under chapters 7 and 11, and subchapter 5, of the United States Bankruptcy Code, as well as in out-of-court debt workouts and Assignments for the Benefit of Creditors. Through the representation of several multi-national corporations and financial institutions, he has been involved ins several of the nation’s largest bankruptcy cases. In addition, Mr. Powers is an experienced commercial litigator, having represented some of the country’s largest special servicers in large-area commercial real property foreclosure actions in both state and federal courts throughout the country, including highly contested foreclosures of over one million square feet of commercial real estate in Central and Western New York.Close