A 'Cram Down' refers to a situation in bankruptcy proceedings where a bankruptcy court forces creditors to accept terms of repayment that are less favorable than the creditors might have wanted. This is commonly applied to various classes of debt to reduce the amount due and reconfigure the debt structure to favor the debtor's repayment capabilities.
Deleveraging is the process of reducing the level of one's financial leverage. This term often refers to corporations but has broadened to include any entities that suffer from too much debt, including individuals, governments, and economic sectors such as real estate. The primary aim is to reduce financial risk.
An OPCO/PROPCO Deal is a financial arrangement where a parent company creates a subsidiary property company to manage real estate assets. This deal structure allows the operating company to reduce debt exposure, improve credit ratings, and potentially avoid double taxation when the property company is set up as a REIT.
