MODIFICATION OF SECURED LOAN UNDER CRAMDOWN CHAPTER 11 PLAN WARRANTED DUE TO PLAN FEASIBILITY THREAT -

Many recent court rulings concerning the treatment of secured creditors under a chapter 11 plan have focused on “cram-up” plans involving reinstatement of secured loans to avoid impairment (and the ability to vote on the plan) or “cram-down” confirmation involving either the sale of the lender’s collateral, subject to the lender’s right to “credit bid” its claim, and attachment of its lien to the proceeds, or treating the secured claim in a way that provides the lender with the “indubitable equivalent” of its claim.