Pari passu
A Latin term meaning “on an equal footing”. In insolvency it describes creditors in the same class sharing available funds proportionately.
Related terms
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Ranking
The order of priority in which creditors or security interests are paid from available assets.
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Unsecured creditor
A creditor without specific security over the debtor’s assets, normally ranking behind secured and preferential claims in insolvency.
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Dividend to creditors
A payment made to creditors from funds available in an insolvency process, usually expressed as a percentage or pence in the pound of their admitted claims.
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