The Lack Of A Clearly Appropriate Cramdown Methodology

Law360, New York (February 23, 2015, 1:56 PM EST) -- In large Chapter 11 cases, millions of dollars often hinge on the appropriate interest rate paid to creditors with secured claims. A secured claim is a claim secured by a lien or mortgage on the debtor's property and must be paid in either the amount of the debt or the value of the property securing the debt (less the amount of any senior liens), whichever is less. The claim may be paid in cash or through deferred payments over time....

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