InTill v. SCS Credit Corp., 541 U.S. 465 (2004), the U.S. Supreme Court applied a formula to determine the appropriate cramdown interest rate with respect to the treatment
Cramdown Interest Rates in Chapter 11
Recently, the United States Bankruptcy Court for the Southern District of New York held, among other things, that debtors could cram down their plan of reorganization on their secured lenders under section 1129(b)(2)(A)(i) of the Bankruptcy Code by providing them with replacement notes paying a below-market interest rate using a formula approach to calculate the applicable interest rate. This article analysis this decision.
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