Financing the Turnaround and the Plan: Issues Involving the § 1111(b)(2) Election, Plan Feasibility and Cramdown Interest Rate Complexities

This panel will examine a multitude of issues involved in financing a chapter 11 exit, including the complications caused by a § 1111(b) election and plan treatment options. Feasibility issues, including balloon provisions and deed-in-lieu clauses, will also be discussed, as well as issues that arise when determining whether a plan is fair and equitable, including deferred payment clauses, interest rates, negative amortization, partial surrender of collateral, carve-outs and differing treatment of trade claims. Dirt-for-debt proposals might also be discussed, along with issues involving indubitable equivalence.