Cram-Up

A situation in which junior classes of creditors impose a cram-down on senior classes of creditors during a bankruptcy or reorganization. In a cram-up a company facing bankruptcy cannot force creditors to accept compromises to their claims outside of the courtroom, but the creditors themselves can agree to the terms. If enough junior class creditors agree to the terms set forth by a company seeking refinancing, they can force holdouts to be bound to the agreement, therefore cramming the refinancing up. Senior classes of creditors would therefore be forced to accept the terms, even if they are not as good as the original deal.

There are two primary cram-up methods: reinstatement and indubitable equivalent. In a reinstatement cram-up, the maturity of debt is kept at the pre-bankruptcy level, debt collection is decelerated and the debt is "cured." Lenders are compensated for damages, but the terms of the debt are kept the same. An indubitable equivalent, which is more commonly used, involves paying a stream of cash payments to creditors equal to the amount due. While this is happening, creditors maintain their liens, which can make it difficult for a post-restructuring company to maintain the funds necessary for working capital.


Investment dictionary. . 2012.

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  • cram — cram·a·sie; cram·ber·ry; cram·bi·dae; cram·ble; cram·bling; cram·bo; cram·bus; cram·mer; cram·pon; cram·pon·née; cyn·o·cram·ba·ce·ae; cyn·o·cram·be; cram; cram·be; cram·bid; cram·oi·sie; cram·a·sy; cram·mel; cram·po·née; cram·poon;… …   English syllables

  • CRAM — ist der Familienname folgender Personen: Donald J. Cram (1919–2001), US amerikanischer Chemiker George F. Cram (1842–1928), US amerikanischer Offizier, Firmengründer und Verleger George Henry Cram (1838–1872), Brigadegeneral im Sezessionskrieg… …   Deutsch Wikipedia

  • Cram — may refer to: Cram (surname), a surname, and list of notable persons having the surname Cram (game show), a TV game show that aired on the Game Show Network Cram (Middle earth), a fictional type of bread in J. R. R. Tolkien s Middle earth… …   Wikipedia

  • cram in — ˌcram ˈin ˌcram ˈinto [transitive] [present tense I/you/we/they cram in he/she/it crams in present participle …   Useful english dictionary

  • Cram — ist der Familienname folgender Personen: Donald J. Cram (1919–2001), US amerikanischer Chemiker George F. Cram (1842–1928), US amerikanischer Offizier, Firmengründer und Verleger George Henry Cram (1838–1872), Brigadegeneral im Sezessionskrieg… …   Deutsch Wikipedia

  • cram — [kræm] v past tense and past participle crammed present participle cramming [: Old English; Origin: crammian] 1.) [T always + adverb/preposition] to force something into a small space cram sth into/onto etc sth ▪ Jill crammed her clothes into the …   Dictionary of contemporary English

  • Cram — (kr[a^]m), v. t. [imp. & p. p. {Crammed} (kr[a^]md); p. pr. & vb. n. {Cramming}.] [AS. crammian to cram; akin to Icel. kremja to squeeze, bruise, Sw. krama to press. Cf. {Cramp}.] 1. To press, force, or drive, particularly in filling, or in… …   The Collaborative International Dictionary of English

  • Cram — (Барселона,Испания) Категория отеля: 4 звездочный отель Адрес: Aribau, 54, Эшампле, 08011 Барсе …   Каталог отелей

  • Cram — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. {{{image}}}   Sigles d une seule lettre   Sigles de deux lettres   Sigles de trois lettres …   Wikipédia en Français

  • cram — [ kræm ] verb * 1. ) transitive to put people or things into a space that is too small: cram something into/in/under something: The sacks of rice were crammed under a huge table. Guards cram 40 prisoners into cells designed for 12. cram something …   Usage of the words and phrases in modern English

  • Cram —   [kræm], Donald James, amerikanischer Chemiker, * Chester (Vermont) 22. 4. 1919, ✝Palm Desert (Calif.) 17. 6. 2001; seit 1950 Professor an der University of California in Los Angeles. Seine Forschungen betrafen v. a. die zu Beginn der 60er Jahre …   Universal-Lexikon

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