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 ?
"Superpriority of the Program Environment for Life is a Drought and Other Climate Change Consequences, Allocating a Half of the Funds.
pursuant to which the Commitment Parties committed to provide $5.5B in senior secured superpriority debtor-in-possession credit facilities.
debts without creditor consent; the ability to get new, superpriority
The bankruptcy court authorized the debtors to obtain up to $80 million in secured financing from the DIP Lenders and, effective as of the Petition Date, granted the DIP Lenders a priming first priority lien in virtually all of the debtors' assets, including all existing and after-acquired inventory and proceeds, and a superpriority administrative expense claim.
(4) Part III then describes the role of associations and analyzes cases interpreting superpriority liens, the Federal Foreclosure Bar, and the FDIC Exemption.
POLICY FAILURE 4: NOT MAKING INSURED DEPOSITS SUPERPRIORITY CLAIMS The fourth and final policy failure is a bit technical.
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.
(5) See Annabella Barboza, Code Liens Are Not "Superpriority" Liens: Is It the End of the Debate?, 87 Fla.
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.
These seniority payments receive a similar superpriority. Seniority payments and wages receive a super-priority for those amounts that have accrued in the two years of employment prior to the insolvency.
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.