cramdown

Court-mandated debt restructuring

Cramdown is a court-approved imposition of a bankruptcy reorganization plan over the objections of some creditors.

The term evokes the plan being crammed down unwilling throats.

More broadly, cramdown describes any situation where terms are forced on a party who must accept them despite disagreement: The new investors forced a cramdown that wiped out the founders' equity.

finance

haircut

Styling by trimming

write-downReduction in recorded value
bondholdersOwners of debt securities
subordinationLower position in hierarchy

seniority · default · insolvency · restructuring · valuation · recovery rate · impairment · mark-to-market · forced conversion · dilution

bankruptcy

debt restructuring

Renegotiating borrower payment terms

Chapter 11Business debt reorganization process
Chapter 13Debt repayment bankruptcy option
reorganizationChanging how something's arranged

foreclosure · underwater mortgage · confirmation · feasibility · good faith

coercion

imposition

Unfair demand on someone

overrideCancel by authority
compulsionIrresistible urge to act
dictateGive orders imperiously

mandate · pressure · strongarm · ultimatum · take-it-or-leave-it · nonconsensual · involuntary · unilateral · binding · dissent

Opposites

consent and agreement

cramdownout-of-court settlement

Resolution bypassing formal litigation

amicable resolution · handshake deal · negotiated settlement · mutual consent · workout

creditor power and control

cramdownfull recovery

Return to prior health

creditor power

cramdownforeclosure

Lender seizes mortgaged property

Family

cramp, cram, cramped, crammed, cramping, cramming, crams

Familiarity: Top 1,000,000
Profile: Timeless · Abstract · Negative · Rated G