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 ?
Notice that in this example, senior acquiescence makes the senior claimants' payoff deviate even more from the $100 they deserve under the absolute priority role ($115 vs.
BARGAINING IN THE SHADOW OF ABSOLUTE PRIORITY 821 CONCLUSION 827
Legally, the absolute priority rule should not apply to settlement agreements that are independent of a proposed plan of reorganization.
We have made it an absolute priority to bring in the scheme as soon as legislation will allow, so I am pleased to announce that victims will be able to apply for payments from next month.
The company underlined that the maximum safety of its installations is an absolute priority.
The Premier emphasised that doors are open to everybody in Bahrain, which is the homeland of every citizen, adding that despite challenges, "our priorities vis-e-vis our country has never and will never change and will remain our absolute priority so that our people shall live in prosperity and in a secure and stable atmosphere which we will never say we are too busy to provide".
SANA'A, June 30 (Saba) - Minister of Planning and International Cooperation said on Saturday that the reconstruction of the affected areas in Sa'ada and Abyan provinces is a governmental and humanitarian absolute priority.
Speaking on Monday at the opening of an international conference titled "Smart Defense - Unification and Sharing: An East-European Vision for Multinational and Innovative Approaches to Capacity Development", Plevneliev referred to energy efficiency as "an absolute priority.
McGregor said: "The absolute priority for us now is to look after our own game and try to keep this excellent run going as long as we possibly can.
The Saudi citizen has absolute priority in employment," he added.
Aviation security remains an absolute priority for Sydney Airport.
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.