Philippine Bar review · Question

Practice question: Cram Down Effect

Multiple Choice Medium

Practice question

All adversely affected classes approve under Section 64. An entirely unaffected class objects and says its rejection necessarily makes ordinary creditor approval impossible. Which is correct?
  1. Every class without exception has an automatic veto
  2. The statutory ordinary-approval rule concerns classes whose rights are adversely modified or affected
  3. Only unaffected classes may vote
  4. The court must cancel all claims
  5. The debtor may now ignore court confirmation

Legal references

  • RA 10142 (FRIA), Sections 4, 7, 9, 17-18, 31-35, 64-70 and 115-121: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html

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