easy · Corporate Credit Analysis distressed

What is 'Cramdown' power in a US bankruptcy court?

  1. The creditors' contractual right to seize the CEO's personal residence if the entire reorganization plan ultimately fails to be approved.
  2. The CEO's unilateral right to reduce all employee salaries company-wide by 25%, without ever seeking prior court approval or creditor consent.
  3. The bankruptcy court's strict administrative requirement that all filed legal documents in the case be printed exclusively on 100% recycled paper stock.
  4. The court's ability to confirm a plan even if one or more impaired classes of creditors vote against it, provided statutory requirements are met.

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