ABSOLUTE PRIORITY RULE
absolute priority rule: translation
- absolute priority rule
- In a Chapter 11 Plan, the debtor-in-possession must completely satisfy the claims of a higher, dissenting class before the claims of classes lower in priority can participate in the reorganization. Thus, a corporate debtor's shareholders cannot receive distribution (or retain any interest) unless the Plan provides for the unsecured creditors to be paid in full if the class of unsecured creditors has rejected the plan.also see plan; Chapter 11 plan; cramdown (Bernstein's Dictionary of Bankruptcy Terminology)
United Glossary of Bankruptcy Terms2012.
- absolute priority rule
- In a Chapter 11 Plan, the debtor-in-possession must completely satisfy the claims of a higher, dissenting class before the claims of classes lower in priority can participate in the reorganization.Thus, a corporate debtor's shareholders cannot receive distribution (or retain any interest) unless the Plan provides for the unsecured creditors to be paid in full if the class of unsecured creditors has rejected the plan.also see Plan, Chapter 11; Cramdown
US Bankruptcy2012.
- absolute priority rule—фин. юр. правило абсолютного приоритета принцип удовлетворения требований к организации в процессе ее ликвидации в соответствии с которым сначала удовлетворяются требован...Англо-русский экономический словарь