Dictionary

  • Pari passu principle

    Latin for “with an equal step”. The English interpretation of the pari passu rule is, “on equal footing, proportionately”.

    The pari passu principle is a fundamental feature of insolvency law where the assets of a company in insolvency are equally distributed between creditors during a voluntary administration, liquidation, or other restructuring. The pari passu rule applies to creditors who do not have a secured interest in the company’s property beyond any other creditor.

made by avanavo.com

×