Tag Archives: cram-down

An Important Ruling for Secured Lenders – Ninth Circuit Holds that the Proper Cramdown Valuation is Replacement Value

In an important decision for secured creditors, the Ninth Circuit recently held that the proper “cramdown” valuation of a secured creditor’s collateral is its replacement value, regardless of whether the foreclosure value would generate a higher valuation of the collateral.  The appellate court’s decision has the potential to significantly impact lenders that include certain types of restrictions … Continue Reading

Bankruptcy Court Leaves Parties Guessing on Cram-Down Interest Rate

Parties continue to skirmish over the sufficiency of the “cram-down” interest rate required to confirm a Chapter 11 plan over a secured lender’s objection. Currently bankruptcy courts will give some weight to the “prime plus” formula set forth in Till v. SCS Credit Corp., 541 U.S. 465 (2004)(plurality opinion). The Till plurality opinion suggest the … Continue Reading