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The Bankruptcy StrategistFeaturesBankruptcy

With Interest Rates On the Rise, Reinstatement Will Again Become An Attractive Restructuring Strategy

By Stephen Selbst, Steven Smith and Luc Pierre-Louis
November 01, 2023

With interest rates on the rise, and the availability of inexpensive credit diminishing, reinstatement under Bankruptcy Code §1124(2) — one of the two methods in the Bankruptcy Code to accomplish a "cram-up" Chapter 11 plan of reorganization — will again become an attractive restructuring strategy.

To formulate a reinstatement plan that will survive challenges, debtors and creditors should heed the lessons from two high-profile reinstatement cases from the Southern District of New York that were decided just months apart: Charter Communications and Young Broadcasting.

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