Cram Down Deal financial definition of Cram Down Deal
cram down (redirected from Cram Down Deal)
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.