About the Course
Introduction
This CLE webinar will discuss how restructuring counsel use "death trap" provisions and related tools to create an accepting impaired class of creditors and thereby ensure confirmation but without violating the confirmation requirements or running afoul of the prohibition against sub rosa plans or the absolute priority rule.
Description
A plan of reorganization proposes what each class will receive based on the debtor's projected post-confirmation value. But even reasonable minds can differ on valuation, and different constituencies in the case such as the debtor, second-tier lienholders, or equity holders often advocate for a higher or lower value based on preferred outcomes. Creditors may feel entitled to distribution.
To avoid long and costly valuation or cramdown litigation that results in a Pyrrhic victory, a death trap offers a junior impaired class more to accept a plan and less if they reject it. Restructuring agreements may require such provisions.
But these provisions can run afoul of the Bankruptcy Code's prohibition against sub rosa plans or the absolute priority rule and generate their own litigation. It can be difficult to determine if these provisions strip creditors of existing rights. They can also be tied to overreaching releases or other "coercive" provisions that attempt to shield controversial provisions from objection or put creditors in an impossible position.
Listen as this esteemed panel discusses how these provisions started and evolved, how they can be used effectively in any size case, and what creditor classes that anticipate facing death trap provisions can do.
Presented By
Mr. Hammer is an award-winning, nationally recognized corporate restructuring attorney who devotes his practice to solving his client’s most challenging insolvency and creditors’ rights issues. For over twenty-five years, he has led major engagements on behalf of corporate borrowers, lenders, financiers, and vendors and, most notably, bankruptcy committees—both official and unofficial —, and trustees in countless significant bankruptcies and workouts across the country and in many foreign countries. Mr. Hammer's clients span nearly every industry vertical including technology, healthcare, insurance, manufacturing, energy, media and entertainment, and retail and consumer goods, from small businesses to Fortune 100 companies. He was named “Legal Advisor of the Year” in 2023 by The M&A Advisor at its 17th Annual Turnaround Awards. Mr. Hammer has been recognized a “Leading Lawyer” for Commercial Bankruptcy and Workout Law and Creditor’s Rights/Commercial Collections Law by Leading Lawyers magazine (2008-2017, 2023-2025) and is listed in Chambers USA: America’s Leading Lawyers for Business and was recognized for his “unrivaled business judgment and client service” (2009-2011, 2013-2014, 2017, 2023). Earlier in his career, Mr. Hammer was honored as one of the “40 Illinois Attorneys Under Forty to Watch” by Law Bulletin Publishing Company, publisher of Chicago Daily Law Bulletin and Chicago Lawyer, and Turnaround & Workouts as one of the Top Young Restructuring Attorneys in America.
Mr. Rosen serves in various professional capacities as an attorney, board member and trusted advisor. He was Chair of the Bankruptcy & Restructuring Department at Lowenstein Sandler LLP, where the department gained national prominence. Mr. Rosen leverages over 35 years of legal, financial and business expertise in providing advice and counsel on a broad range of restructuring solutions, encompassing Chapter 11 reorganizations, out-of-court workouts, and financial restructurings.
Mr. Zahralddin is the Managing Partner of the Wilmington, Delaware office of QPWB and National Practice Group Leader of the Business Law and Commercial Litigation Practice Group. A highly distinguished business attorney and litigator with over 30 years of experience, Mr. Zahralddin advises a global clientele on complex matters involving corporate and commercial litigation, bankruptcy, creditors' rights and workouts, and mergers & acquisitions. He focuses his practice on international law and trade, privacy, data protection and cybersecurity, and regulatory and compliance services, including the Foreign Corrupt Practices Act (FCPA) and cannabis law, utilizing a sophisticated approach to navigate complex international and domestic landscapes. Mr. Zahralddin also provides strategic counsel on intellectual property and internet law, as well as corporate governance matters.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Wednesday, December 2, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. The importance with valuations in Chapter 11
II. The basics of the death trap provision
III. What classes death trap provisions target
IV. Objections and court approval
V. Recent cases
The panel will consider these and other important issues:
- What do courts consider in determining whether to approve plans with death trap provisions?
- What are impermissible uses of death trap provisions?
- How can the parties assess whether death trap provisions really minimize the likelihood of a contested confirmation?
Related Courses
Death Trap Provisions in Chapter 11 Plans: Minimizing the Likelihood of a Cramdown; Incentivizing Consensus
Wednesday, December 2, 2026
1:00 PM ET/10:00 AM PT
Intersection of Bankruptcy and State Foreclosure Laws
Available On-Demand
