C
   
   Cram-down Rules
   















 

C

Cram-down Rules

Procedures in bankruptcy litigation that allow the bankruptcy court to implement a reorganization plan over the objections of a class of creditors. Specifically, these rules provide that secured claimants must retain their liens on the debtor's property, and their liens must be satisfied if the property is sold. The claims of unsecured claimants must receive full value, or no junior claimants will receive anything. Actual practice may deviate from these rules. See also Absolute Priority Rule (APR).

Glossary * C