In a Chapter 11 bankruptcy action, the court may confirm a reorganization plan even if only one class of creditors has accepted the plan. This is known as the Code's ______provision.

Question

Quizplus · Accepted Answer

The correct term is "cram-down" provision, which allows a bankruptcy court to confirm a reorganization plan even if only one class of creditors has accepted it, provided the plan does not discriminate unfairly and is fair and equitable to dissenting classes.

In a Chapter 11 Bankruptcy Action, the Court May Confirm