Tag Archives: Section 1129
Understanding the Absolute Priority Rule and Its Exceptions
The absolute priority rule, as set forth in Section 1129(b)(2) of the U.S. Bankruptcy Code,., is integral to a Chapter 11 reorganization plan getting confirmed by the court. The plan must adhere strictly to a hierarchical system of claim priority, which dictates the sequence in which creditors are paid. The rule is meant ensure fairness […]
