Absolute priority


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Absolute priority

Rule in bankruptcy proceedings requiring senior creditors to be paid in full before junior creditors receive any payment.

Absolute Priority

A rule stating that, in liquidation, certain creditors must be satisfied in full before any other creditors receive any payments. That is, in the liquidation of a company, the absolute priority rule states that holders of secured debt must be paid before holders of unsecured debt. Holders of unsecured debt have precedence over preferred shareholders, and, finally, preferred shareholders must be satisfied before common shareholders.
References in periodicals archive ?
Apart from highways and fiscal stability, we now have our new absolute priority called energy efficiency," Bulgaria's head of state announced.
They will be our absolute priority and we will be contacting them personally over the next few days to resolve any issues they may have.
Surely the absolute priority is for children to firstly acquire a good grounding in the English language and be able to speak it properly?
It is also a matter of setting up a solidary partnership between the industrialised countries and the other world countries, define a better international governance, improve efficiency of mechanisms of development financing, give absolute priority to the tenets of tomorrow's growth (appropriate production, renewable energies, etc.
Funding for helicopters and other equipment must be an absolute priority.
3) One area of confusion has been the absolute priority rule in section 1129 (4) of the U.
Because this is a zero-sum game in which the total payoffs must sum to V, these inequalities assure that absolute priority will be maintained: [[pi.
What came clear to me,' he says, `was the absolute priority need in the world for people fully committed to being open to the will of God for this shattered world.
British Olympic Association chief executive Andy Hunt said: "The BOA's absolute priority is to do everything possible to ensure that the athletes are able to compete in the Vancouver Games.
Rural Affairs Minister Elin Jones said "Our absolute priority now is to help the people involved to find alternative jobs - or to acquire the new skills needed for alternative careers.
Ms Blears said: ''The absolute priority for me now is to be a bread and butter champion for the people of Salford, to go out there and campaign for Labour.
Well-maintained, safe cars are an absolute priority for all road users and pedestrians alike," he said.