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.
Learning Objectives
- You will be able to differentiate approaches for calculating interest
- You will be able to differentiate between classifications of claims and interests
- You will be able to recognize the absolute priority rule concepts
- You will be able to identify the priority list in a claim
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Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last reviewed on May 29, 2024.
Call 1-866-352-9540 for further credit information.
- CA MCLE 1.5
- Lorman Education Services is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
CPE/NASBA - QAS Self Study 2.5 including Business Law 2.5
- Noggin Guru, Inc. dba Lorman Education Services and BankersHub is registered with the National Association of State Boards of Accountancy (NASBA) as a QAS Self Study sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org. For more information regarding administrative policies such as complaint and refund, please contact our offices at 866-352-9539. CPE Credit: Maximum Credit Hours: 2.5 each session (based on a 50 minute credit hour). You must attend at least 50 minutes to obtain credit. Field of Study: Business Law for 2.5 hours. Prerequisite: . Level of Knowledge: Intermediate. Teaching Method: Seminar/Lecture. Advance Preparation: None. Delivery Method: QAS Self Study. Please refer to the information in this advertisement for outline, course content and objectives. Upon completion of this course, you will receive a certificate of attendance. Final approval of a course for CPE credit belongs with each state's regulatory board.
To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
G. Frank Nason, IV
Lamberth, Cifelli, Ellis & Nason, P.A.
- Member of the law firm Lamberth, Cifelli, Ellis & Nason, P.A.
- Practices bankruptcy, including Chapter 11 business reorganizations, bankruptcy litigation, bankruptcy sales, general business bankruptcy and insolvency, and creditors’ rights
- Lectures frequently on commercial law, banking, and other bankruptcy-related topics
- J.D. degree, cum laude, Mercer University Walter F. George School of Law; B.A. degree, Vanderbilt University
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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