Pari passu

Resource type: Glossary item

Status: Maintained

Jurisdictions: England, Wales

"Equal in right of payment". The pari passu principle means that all unsecured creditors in an administration (www.practicallaw.com/9-107-6363) or a liquidation (www.practicallaw.com/5-107-6770) must share equally any available assets of the company, or any proceeds from the sale of any of those assets, in proportion to the debts due to each creditor. It is one of the most fundamental principles of insolvency law.

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Resource ID: 1-384-6152
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Topics

Restructuring and InsolvencyRestructuring and Insolvency (http://property.practicallaw.com/9-103-2072)
Restructuring and Insolvency: Basic ConceptsRestructuring and Insolvency: Basic Concepts (http://property.practicallaw.com/5-103-1263)

Practice notes

Hotchpot rule in cross-border insolvencies Hotchpot rule in cross-border insolvencies (http://crossborder.practicallaw.com/topic7-519-5150)
How are assets distributed to creditors in corporate insolvency procedures? How are assets distributed to creditors in corporate insolvency procedures? (http://crossborder.practicallaw.com/topic5-422-4145)
Validation orders in compulsory liquidation Validation orders in compulsory liquidation (http://crossborder.practicallaw.com/topic4-520-9766)

Legal update: case report

High Court considers the scope of the anti-deprivation principle again High Court considers the scope of the anti-deprivation principle again (http://crossborder.practicallaw.com/topic2-422-4496)

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