Search results
Results From The WOW.Com Content Network
Pari passu is a Latin phrase that literally means "with an ... where creditors are said to be paid pari passu, or each creditor is paid pro rata in accordance with ...
Loan participations can either be made on a pari passu basis with equal risk sharing for all loan participants, or on a senior/subordinated basis, where the senior lender is paid first and the subordinate loan participation paid only if there are sufficient funds left over to make the payments.
However, in various jurisdictions and circumstances, nominally "senior" debt may not rank pari passu with all other senior obligations. For example, in the 2008 Washington Mutual Bank seizure, all assets and most of Washington Mutual Bank's liabilities (including deposits, covered bonds, and other secured debt) were assumed by JPMorgan Chase .
the pari passu principle comes into play only if the purpose of the insolvency procedure is to effect a distribution; if a transaction has the effect of depriving a company of an asset in order to distribute it among some only of the creditors otherwise eligible to participate in a distribution, it offends both principles
Full tag-along rights are usually found in firms where there are few investors and each investor has strong rights, as “contractual rights of investors balance each other and a controlling member, if any, has limited maneuvering room for extracting private benefits”, while the pro-rata option is “the appropriate measure” for firms with ...
But what the respondents are saying here is that the parties to the “clearing house” arrangements by agreeing that simple contract debts are to be satisfied in a particular way have succeeded in “contracting out” of the provisions contained in section 302 for the payment of unsecured debts “pari passu.” In such a context it is to my ...
An unsecured creditor is a creditor other than a preferential creditor that does not have the benefit of any security interests in the assets of the debtor. [1]In the event of the bankruptcy of the debtor, the unsecured creditors usually obtain a pari passu distribution out of the assets of the insolvent company on a liquidation in accordance with the size of their debt after the secured ...
Bonds that have the same seniority in a company's capital structure are described as being pari passu. Preferred stock is senior to common stock in a sale when preferred shareholders must receive back their preference , typically their original investment amount, before the common shareholders receive anything.