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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Bankruptcy

Date & Time
  • event Date

    Thursday, June 16, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE course will instruct bankruptcy attorneys about creating and opposing "cram-up" Chapter 11 plans under which the plan is accepted by junior creditors and then crammed up on senior objecting creditors.

Faculty

Stephen B. Selbst
Partner
Herrick, Feinstein LLP

Mr. Selbst has more than 30 years of experience representing debtors, creditors, official committees, distressed investors and asset purchasers in bankruptcies and out-of-court restructurings. He is a frequent lecturer on bankruptcy and restructuring topics and has published articles and book chapters on bankruptcy-related topics.  He has been frequently quoted in newspaper articles on insolvency related topics and has appeared on CNBC.

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Steven B. Smith
Partner
Herrick, Feinstein LLP

Mr. Smith focuses his practice on complex corporate restructuring and creditors' rights, including in court Chapter 11 cases and out-of-court workouts. He represents official and ad-hoc creditor committees, secured lenders, administrative agents, and other parties-in-interest in restructuring matters. He is experienced in analysis of true sale, non-consolidation and bankruptcy remoteness principles.

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Description

Cram-up is an approach to deal with dissenting secured lenders who prefer a quick sale of assets, sometimes at the expense of most other stakeholders. It usually involves restructuring and reinstating the debt under Bankruptcy Code Section 1124 or providing the "indubitable equivalent" of the lender's claim under Section 1129(b).

Strategies to pursue and timing depend on many factors, such as the general economic environment, interest rates, the debtor's/borrower's covenant package, and what type of defaults exist. The parties often vigorously litigate the existence of any non-curable defaults unrelated to the borrower's financial conditions.

Listen as this panel of experienced bankruptcy attorneys discusses the strategies and the mechanics of cram-up in Chapter 11 and recent cases using this strategy.

Outline

  1. Cramdown vs. cram-up
  2. Relevant Bankruptcy Code provisions
  3. Terms of cram-up plans
  4. How to determine if cram-up is feasible
  5. Recent cases

Benefits

The panel will review these and other significant issues:

  • What are the best ways to plan for cram-up before filing?
  • What covenants may make it impossible to effect cram-up?
  • What constitutes the "indubitable equivalent" of a creditor's interests?