The "Devil's Dictionary
" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary
and used in today's bankruptcy arena.
A cramdown engineered by a junior class or other party in interest where a Chapter 11 plan is confirmed over the opposition of a senior secured lender. The term “cram-up” was an unnecessary addition to bankruptcy lexicon, as the term “cramdown” was already generally understood to include confirmation of a plan over the objection of a senior creditor class. A cram-up is achieved through confirmation of a Chapter 11 plan that either reinstates the claim of the senior secured lender by curing prepetition defaults on the lender’s claim and otherwise meeting the requirements for reinstatement of the lender’s claim or providing the lender with the indubitable equivalent of its claim.
Bankruptcy Code §§ 1124(2), 1129(b). See also Chapter 11 Plan, Confirmation, Cramdown, Indubitable Equivalent, Non-Impairment Plan, Reinstatement.
"The Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson, and Dan Flanigan, who have a combined total of more than 110 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.