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Subchapter V allows Cramdown of Collateral Value

In Pearl Resources, another case of first impression under Subchapter V, a Texas court confirmed a cramdown plan with a reduced collateral value.  Parsing a mix of traditional and new chapter 11 provisions, the court permitted a $7.4M replacement lien for the original $35M lien, deeming it sufficient to cover the $1.2M claim, and thus freeing up assets for the reorganization.