Death Trap

"A provision in a plan whereby an impaired class receives a distribution, or an increased distribution, in exchange for the class’s acceptance of the plan, but receives no distribution, or only the distribution to which the class is minimally entitled, if the class votes to reject the plan. A deathtrap provision can be useful to avoid a costly and time-consuming cramdown hearing. A deathtrap provision is effective only with regard to a class that will not receive a full recovery under the chapter 11 plan. Pursuant to a deathtrap provision, a class acceptance can entitle the class to more than it would have received otherwise, but a class rejection cannot entitle the class to any less than it is entitled to receive under the plan."

Source: https://advance.lexis.com/open/document/openwebdocview/Death-Trap-Financial-Restructuring-Bankruptcy-Glossary-/?pdmfid=1000522&pddocfullpath=%2Fshared%2Fdocument%2Fanalytical-materials%2Furn%3AcontentItem%3A5NNS-TFY1-F60C-X410-00000-00&pdcomponentid=149080