Absolute Priority Rule definition: copy, customize, and use instantly
Introduction
The term "Absolute Priority Rule" refers to the principle in bankruptcy law that dictates the order in which claims must be paid in the event of liquidation. It establishes that creditors and stakeholders must be paid in full before junior creditors or equity holders receive any distribution.
Below are various examples of how "Absolute Priority Rule" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Absolute Priority Rule" as a bankruptcy principle
This definition ties "Absolute Priority Rule" to bankruptcy law.
"Absolute Priority Rule" means the legal principle that dictates the order in which claims must be settled in a bankruptcy proceeding, requiring senior creditors to be paid in full before any distributions are made to junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a creditor protection standard
This definition connects "Absolute Priority Rule" to creditor protection.
"Absolute Priority Rule" refers to the rule in bankruptcy proceedings that ensures senior creditors are paid first, followed by junior creditors, and only after all senior claims are satisfied can equity holders receive any distributions.
Definition of "Absolute Priority Rule" as a liquidation order
This definition links "Absolute Priority Rule" to the liquidation process.
"Absolute Priority Rule" means the order of priority in which creditors and stakeholders are paid during the liquidation of assets in a bankruptcy case, ensuring that claims are satisfied starting from the senior most.
Definition of "Absolute Priority Rule" as a seniority-based distribution order
This definition applies "Absolute Priority Rule" to seniority-based distributions.
"Absolute Priority Rule" refers to the distribution order in bankruptcy that requires creditors to be paid in accordance with their seniority, ensuring senior creditors are satisfied first before junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a hierarchy of claims
This definition ties "Absolute Priority Rule" to a hierarchy of claims.
"Absolute Priority Rule" means the hierarchy established in bankruptcy law, where creditors are paid in the order of seniority, with the most senior creditors receiving payment before junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a priority rule for claims satisfaction
This definition connects "Absolute Priority Rule" to claims satisfaction.
"Absolute Priority Rule" refers to the principle that senior claims must be fully satisfied before junior claims or equity interests are entitled to any payment during a bankruptcy or liquidation process.
Definition of "Absolute Priority Rule" as a payment order in insolvency
This definition links "Absolute Priority Rule" to the payment order in insolvency.
"Absolute Priority Rule" means the rule that dictates that during insolvency or liquidation, claims must be paid in full, starting with senior creditors and proceeding to junior creditors, with equity holders receiving payment only after all creditor claims are settled.
Definition of "Absolute Priority Rule" as a creditor-first approach
This definition ties "Absolute Priority Rule" to a creditor-first approach.
"Absolute Priority Rule" refers to the legal rule in which creditors are prioritized, ensuring they are fully paid before equity holders receive any payment in the event of a liquidation.
Definition of "Absolute Priority Rule" as a liquidation priority system
This definition connects "Absolute Priority Rule" to a liquidation priority system.
"Absolute Priority Rule" means the system that dictates how proceeds from a liquidation are distributed, with senior creditors receiving full payment before any distribution to junior creditors or shareholders.
Definition of "Absolute Priority Rule" as a bankruptcy claim distribution guideline
This definition applies "Absolute Priority Rule" to bankruptcy claims distribution.
"Absolute Priority Rule" refers to the guideline that governs the order in which claims must be paid during bankruptcy, ensuring that senior creditors are paid in full before junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a senior creditor preference
This definition links "Absolute Priority Rule" to senior creditor preference.
"Absolute Priority Rule" means the preference given to senior creditors in a bankruptcy proceeding, where senior claims are paid before any payment is made to junior creditors or shareholders.
Definition of "Absolute Priority Rule" as a debt hierarchy principle
This definition connects "Absolute Priority Rule" to debt hierarchy.
"Absolute Priority Rule" refers to the principle that in bankruptcy or liquidation, creditors are paid according to their debt ranking, with higher-ranking debts being paid first before lower-ranking claims.
Definition of "Absolute Priority Rule" as a liquidation hierarchy
This definition applies "Absolute Priority Rule" to the liquidation hierarchy.
"Absolute Priority Rule" means the hierarchy used in bankruptcy proceedings where senior creditors receive payment first, followed by junior creditors, and only after all debts are cleared, equity holders may receive payment.
Definition of "Absolute Priority Rule" as a creditor-first liquidation rule
This definition ties "Absolute Priority Rule" to creditor-first liquidation.
"Absolute Priority Rule" refers to the bankruptcy rule that dictates senior creditors must be paid first, and only after all senior debts are settled can junior creditors or equity holders receive any distribution.
Definition of "Absolute Priority Rule" as a liquidation claim order
This definition links "Absolute Priority Rule" to liquidation claims order.
"Absolute Priority Rule" means the established order in which claims are settled during liquidation, with senior creditors being paid first, followed by junior creditors, and equity holders receiving payment only after all other claims are satisfied.
Definition of "Absolute Priority Rule" as a bankruptcy creditor satisfaction order
This definition connects "Absolute Priority Rule" to bankruptcy creditor satisfaction.
"Absolute Priority Rule" refers to the order in which creditors are paid during bankruptcy proceedings, requiring senior creditors to be satisfied in full before any payment is made to junior creditors or equity holders.
Definition of "Absolute Priority Rule" as an order for debt repayment
This definition ties "Absolute Priority Rule" to debt repayment.
"Absolute Priority Rule" means the rule that dictates the repayment order during liquidation or bankruptcy, ensuring senior creditors are fully paid before any payments are made to junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a claims satisfaction order in bankruptcy
This definition applies "Absolute Priority Rule" to claims satisfaction in bankruptcy.
"Absolute Priority Rule" refers to the order in which claims are satisfied in bankruptcy, with creditors having priority over equity holders, and senior creditors being paid before any junior creditors or shareholders.
Definition of "Absolute Priority Rule" as an equity holder's last resort
This definition connects "Absolute Priority Rule" to equity holders.
"Absolute Priority Rule" means that equity holders are paid last in a bankruptcy proceeding, after all senior and junior creditors' claims have been fully satisfied.
Definition of "Absolute Priority Rule" as a liquidation payment structure
This definition links "Absolute Priority Rule" to the liquidation payment structure.
"Absolute Priority Rule" refers to the structure that governs the order of payment during a liquidation, with senior creditors receiving full satisfaction before any payment is made to junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a bankruptcy payment method
This definition applies "Absolute Priority Rule" to bankruptcy payments.
"Absolute Priority Rule" means the method by which payments are made to creditors in a bankruptcy, ensuring senior creditors are paid first, with junior creditors and equity holders receiving payment only after senior claims are satisfied.
Definition of "Absolute Priority Rule" as a distribution method in liquidation
This definition ties "Absolute Priority Rule" to distribution methods in liquidation.
"Absolute Priority Rule" refers to the method used to distribute assets during liquidation, where creditors are paid in order of their seniority, and equity holders receive nothing until all creditor claims are settled.
Definition of "Absolute Priority Rule" as a liquidation pay-out hierarchy
This definition connects "Absolute Priority Rule" to the pay-out hierarchy in liquidation.
"Absolute Priority Rule" means the hierarchy in liquidation proceedings that requires senior claims to be satisfied before junior claims and equity holders are entitled to any distribution.
Definition of "Absolute Priority Rule" as an order for seniority-based creditor distribution
This definition links "Absolute Priority Rule" to seniority-based creditor distribution.
"Absolute Priority Rule" refers to the rule in bankruptcy proceedings that ensures senior creditors are satisfied first, in accordance with their priority, before any payment is made to junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a bankruptcy principle
This definition ties "Absolute Priority Rule" to bankruptcy principles.
"Absolute Priority Rule" refers to a bankruptcy principle that requires creditors to be paid in order of priority, with higher-ranked creditors receiving payment before lower-ranked creditors, and shareholders receiving payment only after all creditors are satisfied.
Definition of "Absolute Priority Rule" as a rule for distribution in bankruptcy
This definition connects "Absolute Priority Rule" to bankruptcy distribution.
"Absolute Priority Rule" means the legal rule in bankruptcy that mandates the payment of creditors in a specific order, where senior creditors are paid first before junior creditors, and equity holders are only paid after all claims have been satisfied.
Definition of "Absolute Priority Rule" as a method of creditor payment in restructuring
This definition links "Absolute Priority Rule" to creditor payment in restructuring.
"Absolute Priority Rule" refers to a method used in restructuring or bankruptcy proceedings where claims are paid in a strict order of seniority, ensuring that higher-ranking creditors are paid before lower-ranking ones.
Definition of "Absolute Priority Rule" as an order of debt payment
This definition ties "Absolute Priority Rule" to debt payment order.
"Absolute Priority Rule" means the rule governing the order in which debts are paid during a bankruptcy or liquidation, ensuring that senior debts are paid first, followed by junior debts and equity holders.
Definition of "Absolute Priority Rule" as a principle in corporate reorganization
This definition applies "Absolute Priority Rule" to corporate reorganization.
"Absolute Priority Rule" refers to the principle in corporate reorganization that requires that the claims of senior creditors must be fully satisfied before the claims of junior creditors or equity holders are considered.
Definition of "Absolute Priority Rule" as a method for treating bankruptcy claims
This definition connects "Absolute Priority Rule" to bankruptcy claims treatment.
"Absolute Priority Rule" means the legal rule that treats creditors' claims in order of priority, ensuring that higher-ranking creditors are fully paid before any payment is made to lower-ranking creditors or equity holders.
Definition of "Absolute Priority Rule" as a ranking mechanism in insolvency
This definition ties "Absolute Priority Rule" to insolvency ranking.
"Absolute Priority Rule" refers to the ranking mechanism applied in insolvency cases where creditors are paid based on the priority of their claims, with senior creditors being paid before junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a method for determining creditor payouts
This definition connects "Absolute Priority Rule" to determining creditor payouts.
"Absolute Priority Rule" means the method by which creditors' claims are paid in a specific order during bankruptcy, with senior creditors receiving payment before junior creditors or equity holders.
Definition of "Absolute Priority Rule" as a priority order for creditor claims
This definition applies "Absolute Priority Rule" to priority orders for creditor claims.
"Absolute Priority Rule" refers to the priority order for creditor claims, stipulating that creditors with senior claims must be fully paid before junior creditors or equity holders receive any payment.
Definition of "Absolute Priority Rule" as a hierarchy of creditor claims
This definition ties "Absolute Priority Rule" to a hierarchy of claims.
"Absolute Priority Rule" means the hierarchy that governs how creditors are paid in bankruptcy, with senior creditors receiving their full payment first, followed by junior creditors, and equity holders receiving payment last.
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