The Absolute Priority Rule is a Chapter 11 bankruptcy rule that provides that senior creditors must be fully paid before any junior creditors and stockholders receive any payments. Reference Desk 11 U. S. C. § 1129(b)(2)(B)(ii) [T]he holder of any claim or interest that is junior to the claims of such class will not receive […]
Articles Tagged: chapter 11 bankruptcy
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is primarily aimed at the business that has a lot of debt but they do not want to shut down operations. Chapter 11 is often referred to as reorganization bankruptcy because it allows the business to reorganize their finances so that they can hopefully remain solvent. Unlike other types of bankruptcy, Chapter […]