How does confirmation of a plan under a “cramdown” differ from the regular method of confirmation?
When the holders of every class of impaired claims vote to accept a plan and confirmation is sought under the regular confirmation method, the plan will be confirmed by the court if the debtor proves that it has complied with the Chapter 11 confirmation requirements. When confirmation of a plan is sought under a cramdown, in addition to satisfying the Chapter 11 confirmation requirements, the debtor must how that the plan does not discriminate unfairly against any class of claims who have not accepted the plan and that the plan is fair and equitable with respect to each class of claims that has not accepted the plan. It is more difficult to obtain confirmation under a cramdown than under the regular confirmation method.
