Policy may also encourage lender renegotiation by giving more bargaining power to borrowers in these instances, through legal procedures such as bankruptcy and cramdown
Although [section] 1129(b)(2)(A)(ii) expressly incorporates the [section] 363(k) credit bid right into non-consensual plans, the debtor argued that the proposal satisfied another route to cramdown
The final Part concludes that the Americans should consider adopting the English Carve-out, the English should consider adopting the American cramdown
, and both should consider improvements to their security interest registration systems.
RadLAX sought court approval of a cramdown
plan in which it would sell the hotel and parking structure at auction to the highest bidder free and clear of Amalgamated Bank's lien, and then use the proceeds to pay Amalgamated back.
See David Dayen, Pro Publica Advances Narrative on How Obama Killed Cramdown
, FDL NEWS DESK (Feb.
But there is a cramdown
option which can force dissenters to accept the plan once creditors holding 75 percent of the debt agree to it -- a level Drydocks had reached before it began legal proceedings.
Instituting a policy of mortgage cramdown
during the midst of the crisis would have reduced the remaining flow of private sector mortgage finance.
The type of loan modification under consideration is known as a loan cramdown
or loan stripdown because the judge would reduce the balance of the secured claim to the current market value of the house, turning the remaining balance of the mortgage into an unsecured claim (which would receive the same proportionate payout as other unsecured debts included in the bankruptcy petition).
47) Indeed, it is highly doubtful that our bankruptcy courts could handle the job Congress would be giving them if so-called cramdown
legislation were adopted, at least not if it were adopted without first having a plan like the one I propose up and running to handle the vast majority of underwater homeowners.
We've minimized the damage from the changes on overdraft protection; we helped defeat cramdown
and minimized the impact of some of the CARD Act provisions.
Such a draconian measure goes far beyond the controversial single-family mortgage cramdown
legislation and could create such uncertainty among multifamily lenders that no loans would be made.
MBA did prevail in its efforts to keep a bankruptcy cramdown
amendment from being attached to the bill approved by the House.