Cramdown

Cramdown refers to a legal procedure in bankruptcy cases where a court confirms a reorganization plan despite objections from certain creditors. This typically occurs in Chapter 11 bankruptcy, allowing a debtor to restructure their debts while ensuring that creditors receive fair treatment, often even if they do not agree to the plan. Essentially, it enables a business or individual to move forward with a financial plan that is deemed sustainable, despite pushback from some parties involved, thereby facilitating recovery and helping to preserve the debtor's operations.