Xxxx Down of Interests Generally Sample Clauses

Xxxx Down of Interests Generally. The Bankruptcy Court may confirm a plan at the request of a debtor notwithstanding the plan’s rejection (or deemed rejection) by an impaired class as long as the plan “does not discriminate unfairly” and is “fair and equitable” as to any impaired class that has not accepted the plan. A plan does not discriminate unfairly within the meaning of the Bankruptcy Code if a dissenting class is treated equally with respect to other classes of equal rank. A plan is fair and equitable as to a class of equity interests that rejects a plan if the plan provides (1) that each holder of an interest included in the rejecting class receives or retains on account of that interest property that has a value, as of the effective date of the plan, equal to the greatest of the allowed amount of any fixed liquidation preference to which such holder is entitled, any fixed redemption price to which such holder is entitled, or the value of such interest; or (2) that the holder of any interest that is junior to the interest of such rejecting class will not receive or retain under the plan on account of such junior interest any property at all. Notwithstanding the deemed rejection of the Plan by Class 7, the Debtor believes that Interests in Classes 7 are being treated fairly and equitably under the Bankruptcy Code. The Debtors therefore believe the Plan may be confirmed despite the deemed or actual rejection by these Classes. In addition, although Class 7 will not receive or retain any property, this proposed treatment is fair and equitable as to those Interests because it equal to the value of such interest. To establish that the Interests have no value, the Debtor will rely upon the Valuation that was performed by Hxxxxxxx Lxxxx.