seniority

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Seniority

The order of repayment. In the event of bankruptcy, senior debt must be repaid before subordinated debt is repaid.

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.

seniority

The condition or status of a security that has priority over other securities by the same issuer with respect to the payment of income (that is, interest or dividends) and repayment of principal. As an example, for the same issuer, bonds have seniority over preferred stock and preferred stock has priority over common stock. See also junior security.
References in periodicals archive ?
The Court ultimately concluded that "the seniority system will prevail in the run of cases.
The Supreme Court also indicated that in "special circumstances," it may be reasonable for an employer to grant an accommodation despite seniority rules - for example, in cases where the employer has unilaterally changed its seniority rules before, or where the seniority system already has many built-in exceptions so that one more exception wouldn't impact the system.
The district court found in favor of US Airways, ruling that making an exception to the company's legitimate and long-established seniority system would work an undue hardship on both the company and its nondisabled employees who rely on the system.
Under the old seniority system, senior committee chairmen answered to no one.
But Iwao Namie, professor at Ritsumeikan University, warns, ''The selection system might aim at destroying the seniority system with one stroke, thus ousting the middle-aged and elderly en masse.
The opinion maintained that the Congress intended to give "special treatment" to seniority systems to avert challenges that would disrupt employees "settled expectations.
Maintaining our seniority system has been important and we secured that in the new contract, too.
It appears that top officials bent on reshaping the administrative system regard the termination of the seniority system as indispensable for boosting the economy of localities in their respective regions and also for invigoration of local government offices.
In the deal, IATSE, which represents most Hollywood production workers, eliminated a seniority system that gave union members with more experience advantage in getting jobs over those with less experience.
The committee was further weakened by a variety of procedural reforms in the mid-1970s, that weakened the seniority system.
Mitsubishi, Japan's largest trading house, revised its personnel system for the first time in 30 years this April, switching from the traditional seniority system to a merit-based one.
He said Japanese management, which had been based on the seniority system and lifetime employment, was completely destroyed by foreign pressure in the name of globalism, obliterating the social safety net.