
Chapter 11 Plan Feasibility & Cramdown Analysis
Evaluate Chapter 11 plans for feasibility, cramdown risk, and treatment objections
What You Can Do
Analyze Chapter 11 reorganization plans to assess viability under the Bankruptcy Code, identify cramdown scenarios and absolute priority violations, and predict stakeholder objections to treatment. You get a structured feasibility scorecard, cramdown risk assessment, and creditor-by-creditor treatment analysis with code section citations.
Features
Calculate feasibility metrics (cash flow adequacy, equity cushion, debt service coverage) and flag red flags for confirmation objections.
Evaluate absolute priority rule compliance, identify impaired classes vulnerable to cramdown objections, and assess treatment over other dissenting classes.
Analyze treatment of each creditor class, calculate present values, and identify likely objections based on treatment disparities and Code violations.
Identify specific sections (§1129(a), §1129(b)) where plan may fail acceptance, disclosure adequacy, or feasibility tests.
Automatically cite relevant Bankruptcy Code sections, case law precedent, and statutory requirements for each analysis point.
Rank stakeholder classes by objection probability and severity, factoring in recovery rate disparities and impairment status.
Model alternative treatment structures to test whether modified plans cure identified problems or trigger new objections.
Extract key dates (disclosure statement effective, voting deadline, confirmation hearing) and identify scheduling risks.
Example Output
Plan Feasibility Summary
- Overall Viability Score: 6.8/10 (Moderate Risk)
- Cash Flow Projection: Adequate through month 36; tight in months 37-60
- Cramdown Exposure: Class 4 (unsecured creditors) likely to object; treating at 18% vs. 45% for Class 3 violates absolute priority
Code Section Alerts
- §1129(a)(11): Feasibility concern — projected EBITDA margin below 8% in year 2
- §1129(b): Class 4 dissent triggers cramdown analysis; priority violation identified
- §1129(c): Acceptance requirement met for 3 of 4 classes
Treatment Objection Forecast
- Creditor Class 4 (General Unsecured): 92% objection likelihood — recovers 18% vs. 45% for Class 3 priority unsecured
- Equity: 65% likelihood — plan fails dilution test under proposed recapitalization
- DIP Lender (Class 1): Neutral — adequate protection provided
Cramdown Risk Scenarios
- Base case (cramdown): Plan viable under §1129(b) if secured creditor holds sufficient Class 3 votes
- Modified case: Increase Class 4 recovery to 28%, fund with asset sale proceeds — cures absolute priority objection
Next Steps: Address Class 4 treatment disparity before disclosure statement filing; consider sale procedures under §363.
What's Included
- Feasibility Analysis Framework: Cash flow models, equity cushion tests, debt service coverage ratios, and financial assumptions validation.
- Cramdown & Absolute Priority Checker: Automated detection of impaired classes, priority violations, and cram-down eligibility under §1129(b).
- Stakeholder Treatment Matrix: Class-by-class recovery rates, treatment comparisons, and objection risk scoring with statutory citations.
- Confirmation Roadblock Analyzer: Identification of §1129(a) and §1129(b) hurdles specific to your plan's structure and disclosure statement.
- Code Section Reference Library: Built-in citations to Bankruptcy Code sections, confirmation requirements, and relevant case law doctrines.
- Negotiation Scenario Modeling: Test alternative treatment structures and identify which changes cure objections vs. create new ones.
Who It's For
- Chapter 11 Bankruptcy Attorneys
- Debtor's Counsel & CFOs
- Creditor's Rights & Restructuring Attorneys
- Turnaround Management & Advisory Professionals
- Loan Servicers & Special Servicers
Best For
- Plan feasibility memoranda and disclosure statements
- Pre-confirmation objection prediction and settlement strategy
- Cramdown scenario analysis and treatment modifications
- Confirmation hearing preparation and statutory compliance review
- Alternative plan structures and restructuring negotiations







