Bankruptcy Code Section 1111(b)(2) Elections, Feasibility, Payment Terms, and Cramdown Interest Rate Complexities

Strafford 90 Minute CLE Video Webinar

6.21.23

Travis Powers, Counsel at White and Williams, co-presented at Strafford’s CLE webinar, “Bankruptcy Code Section 1111(b)(2) Elections, Feasibility, Payment Terms, and Cramdown Interest Rate Complexities,” on June 21, 2023.

The presentation discussed how the Section 1111(b)(2) election allows secured and undersecured creditors to command a higher payout and preserve any future increases in the value of its collateral.

The presentation also covered the following questions:

• Does the Section 1111(b) election mean different things in Subchapter V than in traditional Chapter 11 cases?
• What opportunities does the 1111(b)(2) election present for secured lenders facing cramdown by the property owner?
• What must real estate owners understand about the 1111(b) election to determine whether a lender's election can undermine the owner's cramdown objectives?
• What impact does the cramdown interest rate play in determining the value of the lender's 1111(b)(2) election claim?

To learn more about this CLE presentation, click here.