By Christopher J. Kelly, CFE

The recent economic environment has generated a significant number of single-asset real estate cases in the bankruptcy courts. In order for a debtor to achieve a confirmed plan, one of the items the court must decide is the interest rate that the debtor will pay on its secured obligation. When the court approves the interest rate over the objections of the secured creditor, it is referred to as a “cramdown”

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Please contact Christopher J. Kelly, CFE with any questions.

Mr. Kelly is Managing Director in the Dallas office of HSSK, and a former banking executive who has been providing litigation consulting services for more than 20 years. He has provided testimony regarding cramdown interest rates on behalf of creditors and debtors at plan confirmation hearings.