cram down financial definition of cram down. cram down finance term by the Free Online Dictionary.

Cram Down

To force an investor to accept a deal he/she considers unfair. For example, in a hostile takeover, some shareholders may be forced to accept junk bonds instead of cash in exchange for their stock. Likewise, in an uncovered option, the writer may be forced to purchase the underlying asset at a price that is far away from the prevailing market price. Usually, cramming down occurs when an investor is legally obliged to accept a deal, or when not taking the deal would result in an even greater loss.

cram down

Relating to a business deal in which a group of investors is forced to accept an undesirable arrangement. For example, minority shareholders of a company being bought out may have to accept less than what they consider a fair price for their stock.

cram down

A bankruptcy tool used by debtors to force creditors to agree to a plan of reorganization in Chapter 11.If the requisite minimum number of votes have been obtained to approve a plan of reorganization, and if the plan provides better protections or payments to the nonconsenting creditors than they would receive in a liquidation,then the court may “cram down”the plan and all will be bound by its terms.

Mentioned in	?		Financial browser	?		Full browser	?
bankruptcy Cram-Down Cram-Down Deal single-purpose entity	Covered Foreign Currency Loan Covered Interest Arbitrage Covered Interest Rate Parity Covered Option Covered or hedge option strategies Covered position Covered Put Covered Put Option Covered Security Covered Straddle Covered Straddle Write Covered Writer Covering CPA CPF Franc CPI CPM CPPI CPT CQS CR CRA Crack bursatil Crack Spread cradle-to-the-grave management cram down Cram-Down Cram-Down Deal Cramdown Crash Crawling Peg CRB CRC CRD CRE Creador de mercado Creancier Creancier irreductible Crear mercado Creation Unit Creative Accounting Creative Destruction creative financing Crecimiento cero Crecimiento economico Crecimiento equilibrado Crecimiento previsto Credible signal credit Credit Analysis Credit Balance	Craiova Craitar CRAJ CRAJEP CRAK crake crake crake crake Crakeberry Craker Crakes Crakes Crakes CRAKK Crakow Crakow Crakow CRAKU CRAL CRALBP CRALMI CRALO CRALS CRALTS cram cram cram cram cram cram down Cram Down Deal Cram Down Deals cram for a test cram for an examination cram full cram in cram in cram into cram school Cram Schools cram with Cram, Donald Cram, Donald James Cram, Ralph Adams Cram, Ralph Adams Cram, Steve Cram-Down Cram-down deal Cram-Down Deals Cram-Down Rule Cram-Downs cram-full CRAM-MD5 CRAM-SE Crambe Crambe Crambe abyssinica

Mentioned in

Financial browser

Full browser

bankruptcy
Cram-Down
Cram-Down Deal
single-purpose entity