'Dirt for Debt' In Bankruptcy Plans of Reorganization

A debtor's goal in a Chapter 11 Bankruptcy is to confirm a "plan of reorganization." Creditors usually have the right to vote for or against a plan, and in some cases, a plan can be confirmed over the objection of one or more classes of creditors. This is called a "cram-down." The Bankruptcy Code's rules governing cram-down are complex and differ for secured and unsecured classes of creditors. This article shows how bankruptcy courts have ruled on a particular method of cram-down known as a "dirt-for-debt" plan.

7 minute read November 01, 2019 at 12:11 AM

Peter Janovsky

A debtor's goal in a Chapter 11 Bankruptcy is to confirm a "plan of reorganization," which permits it to continue in business or liquidate its assets in an orderly manner.

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'Dirt for Debt' In Bankruptcy Plans of Reorganization

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