The Bankruptcy Code's so-called "cramdown" statute provides debtors with a significant tool that can be used to impose a reorganization plan upon recalcitrant secured lenders, subject to fulfillment of certain requirements. In particular, Section 1129(b) of the Bankruptcy Code allows a bankruptcy court to approve a debtor's reorganization plan over the objections of a secured creditor so long as the plan is "fair and equitable" to the creditor.
USA, New York, Banking, Insolvency & Restructuring, Litigation, Skadden Arps Slate Meagher & Flom LLP, Debtor, Secured creditor, Title 11 of the US Code, United States bankruptcy court