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To: Steve Harmon who wrote (2103)	4/24/1999 3:13:00 PM
From: SnakeInATuxedo	Respond to of 2742

Cramdown The action by which the court may order a plan approved over the negative vote of a class of dissenting creditors. Source: bernsteinlaw.com You're welcome.

To: Steve Harmon who wrote (2103)	4/24/1999 3:20:00 PM
From: SnakeInATuxedo	Read Replies (1) \| Respond to of 2742

Even more than you ever wanted to know about "cramdown" 45. When and under what circumstances may a plan be confirmed by the bankruptcy court? After creditors and interest holders have voted on whether to accept or reject a proposed chapter 11 plan, the bankruptcy court will hold a hearing for the purpose of determining whether to confirm the plan. This hearing is called the confirmation hearing. At the confirmation hearing, the party proposing the plan, which is usually the debtor, must present evidence showing that the plan complies with the chapter 11 confirmation requirements. A plan may be confirmed by the court either through the regular confirmation method or through a cramdown. The regular method of confirmation is used when the plan has been accepted by every class of creditors with impaired claims and interest holders. The cramdown method of confirmation is used when the plan has been rejected by one or more classes of creditors with impaired claims or interest holders, but has been accepted by at least one class of creditors with impaired claims. A plan that has not been accepted by at least one class of creditors with impaired claims cannot be confirmed by the court. 46. How does confirmation of a plan under a "cramdown" differ from the regular method of confirmation? When every class of creditors with impaired claims and every class of interest holders has voted to accept a plan and confirmation is sought under the regular confirmation method, there are 13 legal requirements that must be satisfied in order for the plan to be confirmed by the court. When confirmation of a plan is sought under a cramdown, in addition to satisfying each of the 13 confirmation requirements except the requirement that the plan be accepted by every class of impaired claims and interests, it must be shown that the plan does not discriminate unfairly against any class of claims or interests not accepting the plan and that the plan is fair and equitable with respect to each class of claims or interests that has not accepted the plan. For a plan to be deemed fair and equitable with respect to a non accepting class of claims or interests, the plan must meet certain legal requirements that are too complicated to be explained here. It is more difficult to obtain confirmation under a cramdown than under the regular confirmation method. Source: valinet.com You're welcome.