Practical Law Glossary Item 4-500-6617 (Approx. 2 pages)
Glossary
Cram Up
Also known as crammed-up. The mechanism by which junior creditors can force a plan of reorganization on a dissenting class of senior creditors. For example, this can happen if junior creditors successfully reinstate the debt held by the dissenting senior creditors (§ 1124, Bankruptcy Code). Debt can be reinstated only if the creditor is determined to be unimpaired. Unimpaired creditors are deemed to have accepted the proposed plan and are not entitled to vote (§ 1126(f), Bankruptcy Code).