The restoration of a creditor’s claim or an interest holder’s equity interest to an unimpaired status under Section 1124(2) through Chapter 11 Plan provisions that cure any defaults relating to the claim or interest, reinstates the maturity of the claim or interest as it occurred prior to the default, and compensates the holder of the claim or interest for any damages suffered as a result of reliance on a contractual right to accelerated payment upon default. The plan must also compensate the holder of the affected claim or interest for damages resulting from any failure to perform nonmonetary obligations (with certain exceptions) and leave unaltered the legal, equitable, or contractual rights of the holder of the affected claim or interest. The right to reinstate a claim prevails over contractual language providing for the holder of a claim or interest to accelerated payment upon default.
Bankruptcy Code § 1124(2). See also Cram-Up, Impairment, Impaired Class.