superpriority

superpriority

The rights of certain creditors of a bankrupt debtor to receive payment before others that would seem to have superior claims to money or assets; typically granted when a creditor provides much-needed financing after the filing of the bankruptcy petition.Attorneys and bankruptcy trustees have a de facto superpriority because they will always be paid from estate assets before any other creditors.

References in periodicals archive ?
Omega's commitment to provide the DIP financing is conditioned on obtaining first priority liens on the Debtors' assets and being granted superpriority claim status in the bankruptcy cases.
While there are doubts as to the extent to which debtors consciously pursue this strategy, (16) one solution to this undesirable distributional effect is to give tort claimants a superpriority over the assets of the debtor, ahead of secured creditors.
The RSA also provides for a $100 million delayed-draw superpriority secured debtor-in-possession financing facility (the DIP Facility) provided by a group of Prepetition Lenders.
The main recent changes have been modifications to the rules for superpriority and expanding the role of possession.
Unlike 20 other states, Arkansas does not have a superpriority lien law for unpaid assessments, but the Arkansas Supreme Court affirmed a circuit court ruling that a foreclosure purchaser is jointly and severally liable with the seller for assessments owed by the seller up to the time of conveyance.
Part I describes the law governing traditional state borrowing practices and explains why states have difficulty creating risk-free or otherwise superpriority debt obligations.
The court noted that the agency's post-petition perfection of its lien rights did not violate the stay because the lien arose pre-petition, and, under Wisconsin law, was granted superpriority rights over the rights of the employer's secured lender and other creditors.
281) Scholars fear that unless the pension or wage claims receive a superpriority or preferred priority, no recovery will be made.
MCCULLOUGH, RALPH, "Analysis of bankruptcy code section 364(d): When will a court allow a trustee to obtain post-petition financing granting a superpriority lien", Commercial Law Journal no.
THE PROBLEM: SHORT-RUN SUPERPRIORITY IN THE DERIVATIVES AND REPO MARKETS
granting, by French labor code, of absolute superpriority to employees' claims for wages covering the last 60 days' wages prior to opening of insolvency proceedings); CODE DE COMMERCE [C.
This is because costs are secured by a security interest on the real property affected by the environmental conditions, as well as on any contiguous real property, and that interest is given superpriority status over any other claim, right, charge, or security against the property.