Issue link: https://mbozikis.ufcontent.com/i/1422521
172 equal to the allowed amount of such claim; or (b) the holder of any claim or interest that is junior to the claims of such class will not receive or retain under the plan, on account of such junior claim or interest, any property; 94 and (iii) with respect to a class of interests, (a) the plan must provide that each holder of an interest of such class receive or retain, on account of such interest, property of a value, as of the plan's effective date, equal to the greatest of the allowed amount of any fixed liquidation preference to which such holder is entitled, any fixed redemption preference to which such holder is entitled or the value of such interest; or (b) the holder of any interest that is junior to the interests of such class will not receive any property. 11 U.S.C. ยง 1129(b)(2). i. The calculation of the present value of the payments that must be made to a class of secured creditors in order to cram down (commonly referred to as a "cram up" of the secured creditor class) a Chapter 11 plan on such class requires the determination of the applicable interest rate. This determination has been a source of some controversy in the courts. In 2004, the U.S. Supreme Court concluded that the formula approach (i.e., starting with the market rate or prime rate adjusted for risk based on the circumstances of the particular case) should be utilized to determine the appropriate cramdown interest rate in a Chapter 13 case. See Till v. SCS Credit Corp., 541 U.S. 465 (2004). Although the U.S. Supreme Court did not rule on what the appropriate cramdown interest rate would 94 In an individual debtor case, however, the debtor may retain any property that was acquired, or any earnings from services performed by the debtor, postpetition but prior to confirmation.