Excerpt from Practical Guidance

How To Reduce Or Eliminate The Need For Exit Financing

Law360, New York (April 2, 2014, 2:37 PM EDT) -- There are at least three strategies for reducing or eliminating the need for new exit financing: (1) reinstating the prepetition secured debt, (2) allowing the secured lender to retain its liens while making deferred cash payments on the secured debt, or (3) reaching a consensual agreement with the prepetition lender. The first two strategies usually involve a "cramdown" or "cram-up" plan....

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