The effort by a debtor to obtain plan confirmation over the objection of an impaired, non-accepting class of creditors (“cramming the plan down the creditor’s throat”).

Often incorrectly used to describe the reduction in amount of a secured claim by operation of Section 506(b), which grants the creditor a secured claim only to the extent of the value of its collateral.

A cramdown usually involves an effort by the debtor to confirm a plan that reduces the lender’s interest rate, changes the amortization schedule of the lender’s loan, extends the maturity date of the loan, or otherwise changes the lender’s rights.

A plan cannot be crammed down if it unfairly discriminates against a class that did not accept the plan and unless the plan is fair and equitable to each class that did not accept the plan.

Bankruptcy Code § 1129(b). See Confirmation Requirements, Cramdown Interest Rate, Cram-Up, Fair and Equitable Test, Gerrymandering, Indubitable Equivalent, Unfair Discrimination.

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