Shoe Sunshine,Inc.filed for bankruptcy protection under Chapter 11 and submitted a plan of reorganization within 120 days after filing for relief.Two of the classes of creditors voted against the plan.However,the bankruptcy judge considered the plan to be feasible,fair,and in the best interests of the creditors;it approved it in spite of these creditors' objections.This action by the judge is called a "cramdown."

Question

Quizplus · Accepted Answer

A cramdown occurs when a bankruptcy judge approves a reorganization plan over the objections of one or more classes of creditors. In this scenario, the judge approved the plan despite objections, so it is a cramdown.