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Introduction
A term “Cramdown” refers to a process in which a court-approved debt restructuring or bankruptcy plan is imposed on creditors who have not agreed to the plan, effectively "cramming down" the terms onto the dissenting creditors. It is often used in bankruptcy cases to allow debtors to proceed with a reorganization or liquidation plan despite opposition.
Below are various definitions of "Cramdown" in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Cramdown" in bankruptcy proceedings
This definition ties "Cramdown" to court-ordered debt restructuring.
"Cramdown" means a bankruptcy process where a court approves a reorganization plan over the objections of certain creditors, provided the plan meets legal requirements.
Definition of "Cramdown" in secured creditor treatment
This definition connects "Cramdown" to secured loan modifications.
"Cramdown" refers to the forced modification of a secured creditor’s claim, reducing the owed amount to the collateral's fair market value as part of a bankruptcy plan.
Definition of "Cramdown" in Chapter 11 bankruptcy
This definition links "Cramdown" to corporate debt restructuring.
"Cramdown" means a Chapter 11 provision allowing a court to confirm a debtor’s reorganization plan despite creditor opposition, provided it meets statutory fairness requirements.
Definition of "Cramdown" in Chapter 13 bankruptcy
This definition applies "Cramdown" to individual debt restructuring.
"Cramdown" refers to a mechanism in Chapter 13 bankruptcy that enables debtors to reduce secured loan balances on personal property to the asset’s current value.
Definition of "Cramdown" in mortgage modification
This definition ties "Cramdown" to real estate loan adjustments.
"Cramdown" means a judicially imposed restructuring of a mortgage in bankruptcy, lowering the principal balance to reflect the fair market value of the property.
Definition of "Cramdown" in debt-for-equity swaps
This definition connects "Cramdown" to creditor settlements.
"Cramdown" refers to a process in which creditors receive equity in a reorganized entity in exchange for debt, despite their initial objection.
Definition of "Cramdown" in multi-class creditor disputes
This definition links "Cramdown" to hierarchical debt treatment.
"Cramdown" means a bankruptcy ruling that enforces a reorganization plan even if a class of impaired creditors votes against it, ensuring fairness and viability.
Definition of "Cramdown" in small business bankruptcies
This definition applies "Cramdown" to small business debt relief.
"Cramdown" refers to a bankruptcy provision allowing small business owners to restructure secured debts, reducing them to the collateral’s actual value.
Definition of "Cramdown" in automobile loans
This definition ties "Cramdown" to vehicle loan restructuring.
"Cramdown" means a bankruptcy provision that reduces a car loan balance to the vehicle’s current market value, provided the loan is older than a specified period.
Definition of "Cramdown" in real estate development
This definition connects "Cramdown" to commercial property financing.
"Cramdown" refers to a court-approved plan restructuring commercial real estate debt, overriding lender objections when fair treatment is ensured.
Definition of "Cramdown" in liquidation scenarios
This definition links "Cramdown" to asset liquidation in bankruptcy.
"Cramdown" means a process in which courts enforce liquidation terms unfavorable to some creditors if they align with bankruptcy priority rules.
Definition of "Cramdown" in leveraged buyouts
This definition applies "Cramdown" to post-buyout debt negotiations.
"Cramdown" refers to a court-mandated reduction or restructuring of debt following a leveraged buyout, imposed despite creditor dissent.
Definition of "Cramdown" in distressed mergers
This definition ties "Cramdown" to forced merger financing adjustments.
"Cramdown" means a legal mechanism allowing debt restructuring in a distressed merger, ensuring continued operation despite creditor opposition.
Definition of "Cramdown" in priority debt classification
This definition connects "Cramdown" to legal debt ranking.
"Cramdown" refers to the restructuring of lower-priority debt in bankruptcy while ensuring priority claims are satisfied under court supervision.
Definition of "Cramdown" in debtor-in-possession financing
This definition links "Cramdown" to financing under bankruptcy protection.
"Cramdown" means a court-enforced restructuring of debtor-in-possession loans to facilitate continued business operations.
Definition of "Cramdown" in Chapter 12 bankruptcy
This definition applies "Cramdown" to family farm and fishing bankruptcies.
"Cramdown" refers to a process allowing family farmers and fishermen to restructure secured debts to match asset values and future income.
Definition of "Cramdown" in personal bankruptcy cases
This definition ties "Cramdown" to consumer debt restructuring.
"Cramdown" means a legal provision enabling individuals in bankruptcy to modify loan terms for secured debts like furniture and appliances.
Definition of "Cramdown" in municipal bankruptcies
This definition connects "Cramdown" to public sector debt restructuring.
"Cramdown" refers to a mechanism allowing courts to approve a municipality’s debt restructuring plan despite creditor opposition.
Definition of "Cramdown" in corporate debt refinancing
This definition links "Cramdown" to forced refinancing terms.
"Cramdown" means a process whereby a bankruptcy court approves new repayment terms for corporate debt, even if some creditors disagree.
Definition of "Cramdown" in insolvency law
This definition applies "Cramdown" to general insolvency proceedings.
"Cramdown" refers to a judicially imposed debt restructuring plan in insolvency cases, ensuring fair treatment among stakeholders.
Definition of "Cramdown" in cross-border bankruptcies
This definition ties "Cramdown" to international insolvency cases.
"Cramdown" means a legal process allowing debt restructuring across multiple jurisdictions, ensuring compliance with international bankruptcy laws.
Definition of "Cramdown" in bondholder agreements
This definition connects "Cramdown" to bond debt restructuring.
"Cramdown" refers to a court-enforced adjustment of bond terms in bankruptcy, reducing principal or modifying interest rates.
Definition of "Cramdown" in creditor hierarchy restructuring
This definition links "Cramdown" to priority adjustments in repayment plans.
"Cramdown" means a bankruptcy process where courts impose changes in repayment priorities, ensuring compliance with legal requirements.
Definition of "Cramdown" in foreclosure prevention
This definition applies "Cramdown" to distressed homeowners.
"Cramdown" refers to a legal tool used in bankruptcy to reduce mortgage principal, preventing foreclosure when a home’s value has declined.
Definition of "Cramdown" in wage garnishment limitations
This definition ties "Cramdown" to income-based debt repayment plans.
"Cramdown" means a bankruptcy mechanism that limits wage garnishments by modifying repayment plans based on disposable income.
Definition of "Cramdown" in distressed asset acquisitions
This definition connects "Cramdown" to bankruptcy-driven asset transfers.
"Cramdown" refers to court-approved asset sales that override secured creditor objections to facilitate fair distribution.
Definition of "Cramdown" in retail bankruptcies
This definition links "Cramdown" to restructuring in the retail sector.
"Cramdown" means a judicially approved plan allowing struggling retailers to restructure secured debts while maintaining operations.
Definition of "Cramdown" in pension liability adjustments
This definition applies "Cramdown" to employee benefit restructuring.
"Cramdown" refers to a bankruptcy provision allowing modifications to pension liabilities while ensuring compliance with federal laws.
Definition of "Cramdown" in supplier contract negotiations
This definition ties "Cramdown" to forced supplier contract modifications.
"Cramdown" means a legal mechanism enabling businesses in bankruptcy to renegotiate supplier agreements despite vendor opposition.
Definition of "Cramdown" in franchise bankruptcies
This definition connects "Cramdown" to franchise financial distress.
"Cramdown" refers to a legal process allowing struggling franchises to restructure secured debts while continuing operations.
Definition of "Cramdown" in aviation industry restructuring
This definition links "Cramdown" to airline bankruptcies.
"Cramdown" means a bankruptcy process that allows airlines to restructure aircraft leases and secured debts to remain operational.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.