test folder

171 interest test of Section 1129(a)(7) of the Bankruptcy Code, see In re 203 N. LaSalle St. Ltd. P'shp., 190 B.R. at 586, (iii) preserving the goodwill of the debtor's most essential creditors, such as critical creditors or vendors, see In re Kliegl Bros. Universal Elec. Stage Lighting Co., Inc., 149 B.R. 306, 308 (Bankr. E.D.N.Y. 1992), and (iv) when other Sections of the Bankruptcy Code allow for subordination of a creditor's claims, such as Section 510 of the Bankruptcy Code, see In re Lernout & Hauspie Speech Prods., N.V., 301 B.R. 651, 662 (Bankr. D. Del. 2003). In the context of a cramdown, the "fair and equitable" requirement is generally satisfied if the plan provides for payment in full of more senior classes (but not more than 100% of their claims or interests) before junior classes receive any value. The Bankruptcy Code contains specific requirements which must be met for a plan to be deemed fair and equitable: (i) with respect to a class of secured claims, the plan must provide (a) (1) that the holders of the secured claims retain the liens securing such claims, regardless of whether the underlying property is retained by the debtor or transferred to another entity, to the extent of the allowed amount of such claims and (2) each holder of a claim of such class receive on account of such claim deferred cash payments totaling at least the allowed amount of such claim of a value, as of the plan's effective date, of at least the value of such holders' interest in the estate's interest in such property; (b) for the sale of any property that is subject to the liens securing such claims, free and clear of such liens, with such liens to attach to the proceeds thereof; or (c) for the realization by such holders of the indubitable equivalent of such claims; (ii) with respect to a class of unsecured claims, (a) the plan must provide that each holder of a claim of such class receive or retain on account of such claim, property of a value, as of the plan's effective date,

• Cover