Impaired | Practical Law

Impaired | Practical Law

Impaired

Impaired

Practical Law Glossary Item 7-382-3529 (Approx. 2 pages)

Glossary

Impaired

Also known as impairment and impaired class. A class of creditors whose legal, equitable, or contractual rights are modified in any way by a plan of reorganization, whether or not the change was adverse. For example, a creditor that is to be paid less than the full amount of its claim under the plan is impaired. Only impaired creditors can vote on the plan, while unimpaired classes are deemed to automatically accept it.