absolute priority rule

noun

Legal Definition of absolute priority rule

: a rule that provides for the satisfaction in full of claims of senior creditors before any payments can be made to junior creditors under a chapter 11 bankruptcy plan

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“Absolute priority rule.” The Merriam-Webster.com Legal Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/legal/absolute%20priority%20rule. Accessed 28 January 2020.

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