Restructuring Plans · glossary
The court binding a class that voted against the plan, relying on another class’s yes. Its full name is cross-class cram down. Nobody in the class that said no may be worse off than without the plan, and a class that would be paid, or has a real economic interest, without the plan must vote for. Explanatory Statement, paragraph 5.3 · Chapter 1 · see No worse off test, Relevant alternative
Explained in Chapter 1, What a Restructuring Plan Is and Why a Company Uses One, of Restructuring Plans.
The chapter has used four words of art so far: restructuring plan, class, sanction and lock-up. One more completes the set. If a class votes no, the court may still bind it, relying on another class that voted yes. This is cross-class cram down, or cram down for short. The table puts the five words to work in Valkenrade’s plan…Read Chapter 1, What a Restructuring Plan Is and Why a Company Uses One →
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