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Sponsored by Lorman Education
Product ID: 408950EAU
 
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The Absolute Priority Rule in Bankruptcy

OnDemand Webinar (89 minutes)

Understand the concepts of the absolute priority rule and the means by which creditors can put pressure on debtors.Bankruptcy is governed by equitable considerations addressing the allocation of assets following insolvency. Fundamental to these considerations is the notion that creditors are to be preferred over equity holders. The bankruptcy code codifies this notion with the absolute priority rule. From the perspective of creditors, the absolute priority rule is the leverage needed to maximize recovery if existing equity holders desire to retain their interests. From the perspective of debtors, the absolute priority rule is a hurdle to overcome when proposing a restructuring. This topic will provide you the basic concepts of the absolute priority rule, the means by which creditors can put pressure on debtors, the mechanisms debtors can employ to satisfy or circumvent the rule, and the impact that undersecured creditors have on the process. You can learn how the absolute priority rule is employed in cases filed by individuals. Additionally, you can learn the effects of the newly enacted Subchapter V on the process.

Authors

G. Frank Nason IV, Lamberth, Cifelli, Ellis & Nason, P.A.

Agenda

Overview of Absolute Priority Rule Concepts

• Classification of Claims and Interests

• Impairment

• Voting and Insider Claims

• New Value

Strategies for Creditors and Debtors

• Classification Disputes

• Artificial Impairment

• The 1111(b) Election

• New Value

Individual Debtors

• Exempt Property

• Contribution of Postconfirmation Income

• Delayed Discharge

Effect of New Subchapter V and the CARES Act

• Inapplicability of the Absolute Priority Rule

• Options for Unsecured Creditors