A Chapter 11 plan may be confirmed over the objections of creditors, the so-called "cram down," if the plan does not discriminate unfairly and is fair and equitable to all objecting impaired classes of creditors. The absolute priority rule states that a plan is not fair and equitable if the debtor, or any junior creditor, retains an interest in estate business property and unsecured creditors receive less than full payment on their claims.
Agricultural Law Digest
"Agricultural Law Digest: The Absolute Priority Rule,"
Agricultural Law Digest: Vol. 1
, Article 2.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol1/iss8/2