2015 Northeast Bankruptcy Conference, 2012

Do “Out-of-the-Money” Creditors Have Standing?

There are many chapter 11’s filed primarily to sell the collateral
for undersecured creditors—meaning that there isn’t any value generated
for unsecured creditors or equity. This panel will explore the various
issues that result such as basic standing and the appropriateness of
forming and maintaining a creditors committee and an equity committee.
The panel will also discuss the various arguments put forth to justify a
carveout or “gift” for unsecured creditors and the often used

Litigating the Cramdown Rate

“Cram down” requires full payment of secured classes. This, in turn,
requires a present value analysis of the dividends secured creditors
will receive under the plan. This panel will review what debtors and
secured creditors need to show to establish a cramdown rate and the
nuts-and-bolts evidentiary issues joined by cramdown litigation.