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Cram-Down Interest Rates

Corporate Restructuring Group – March 2013 newsletter

The Deloitte CRG Newsletter addresses the current state and outlook for the CRG practice, including recent engagements, announcements, case studies, and upcoming events.

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Feature

How do bankruptcy courts handle cram-down interest rates?
The determination of cram-down interest rates in the context of a contested Chapter 11 plan of reorganization is anything but settled law. Courts and experts have yet to fully converge on the impact of the U.S. Supreme Court's plurality decision in Till v. SCS Credit Corporation and the precise factors, considerations and methodology for determining Chapter 11 cram-down interest rates. Clear and binding Circuit Court guidance has to date been elusive due, in part, to the plurality nature of the Till decision. In complex Chapter 11 matters, decisions often rest on the persuasiveness of the expert evidence. Recently, the Fifth Circuit weighed in on cram-down interest rates in a matter that featured the expert services of Louis E. Robichaux IV, a Dallas-based Principal in Deloitte CRG. Many courts have concluded that determination of cram-down interest rates should include an analysis of the relevant lending markets, the circumstances of the estate, the value of the collateral and feasibility analysis of the plan. Deloitte CRG provides a full range of services to secured lenders and debtors in connection with cram-down interest rates.

Find out more information on the Fifth Circuit's ruling In re Texas Grand Prairie Hotel Realty, L.L.C.

Special features

Deloitte's third biennial cost survey: Cost-improvement practices and trends in the Fortune 1000
Learn how the focus of cost reduction initiatives has shifted over time and what it means for executives trying to choose the right approach for their organizations.
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Featured engagements

Deloitte CRG’s featured engagements this month include work with the following selection of clients: Benada Aluminum Products LLC, telecommunications company, building products distributor, Tandy Brands Accessories, Inc., mobile device accessory maker and Medical Action Industries. For an in-depth look at Deloitte CRG’s recent engagements, check out featured engagements.

As used in this document, 'Deloitte' means Deloitte LLP [and its subsidiaries]. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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