Cramdown

(redirected from Crammed Down)
Also found in: Dictionary.

Cramdown

The ability of the bankruptcy court to confirm a plan of reorganization over the objections of some classes of creditors. This often involves resetting the amount of principal that the bond holders are owed. Related is a mortgage cramdown. Here the home owner cannot pay the mortgage because of financial distress and, indeed, the mortgage could be a higher value than the house. A cramdown resets (lower) the principal amount of the mortgage. This may allow the homeowner to stay in the house (avoid foreclosure).

Cramdown

In bankruptcy, the ability of a court to formulate and implement a Chapter 11 reorganization plan over and above the objections of creditors. Generally speaking, unsecured creditors object to a debtor's bankruptcy because they have no recourse for retrieving the debt. The rationale behind a cramdown is the fact that unsecured creditors will usually receive part of the debt back under a Chapter 11 reorganization, but would receive nothing in a Chapter 7 liquidation. Cramdown is therefore thought to be the least negative option for both the debtor and the creditors. Courts are required, however, to formulate a cramdown that is as equitable as possible for all parties.
Mentioned in ?
References in periodicals archive ?
NAFCU President/CEO Fred Becker wrote that "any amounts crammed down are losses to the credit union that ultimately lead to increased loan rates and decreased dividends offered to members of the credit union.
Rolling out of my warm bag in the cool pre-dawn darkness of opening morning, I quickly crammed down a snack, grabbed my fanny pack and bow, and headed toward a distant area that I'd scouted.
Well, considering that most of the changes in the past 15 years have been crammed down our throats, without any input from practicing IM physicians, this sounds like we are going to embrace our tormentors.
As an ogre, Shrek (voiced by Mike Myers) has little use for Christmas, but neither would you if you were having it crammed down your throat by the excitable Donkey (Eddie Murphy), whose exuberantly clueless self-absorption after three films can wear thin.
On our visit no spectres appeared to spook us - but there were a lot of us crammed down there and perhaps even spirits need personal space.
At Aviation Safety Officer School in Pensacola, ORM (operational risk management, as if I need to spell out the acronym because we've heard it so many times), is crammed down our throats ad nauseam.
Youths, in general, do not determine what marketing is crammed down their throats or what impossible body image is held up as the standard for beauty--an ad exec does.
We want to make sure the novelty doesn't get crammed down on price.
Instead, it provokes denial, harsh condemnation of good people, and unnecessary division of the community In this area, as in several others, intelligent, loyal Catholics resist when agendas that don't make sense are crammed down their throats.
They don't need to come to England get- togethers and have more theory crammed down them.
The CD-ROM allows online services to deliver the kind of robust audio and video that just can't be crammed down phone lines," said Jupiter's president, Gene DeRose.
If a $100,000 mortgage debt secures a property currently worth only $50,000, the lender's lien may be crammed down to $50,000 if the borrower prevails in the cramdown motion.