The pari passu principle and collection remedies for the office-holder


Published by a UUÂãÁÄÖ±²¥ Restructuring & Insolvency expert
Practice notes

The pari passu principle and collection remedies for the office-holder


Published by a UUÂãÁÄÖ±²¥ Restructuring & Insolvency expert

Practice notes
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The primary function of office-holders in both corporate and personal insolvency is to collect in the assets of the company or individual, realise and distribute them to the company's or individual's creditors in accordance with the statutory waterfall. For further information, see Practice Notes:

  1. •

    Waterfall of payments—a comparative guide

  2. •

    Waterfall of payments in administration

  3. •

    Waterfall of payments in liquidation

  4. •

    Waterfall of payments in bankruptcy

  5. •

    Waterfall of payments in administrative receivership

Pari passu distribution

Pari passu is a Latin phrase meaning 'with an equal step' or 'on equal footing'. For the purposes of insolvency it encompasses the principle of proportionality and is referred to when stating how creditors are to be treated as against each other. If they are ranked 'pari passu' then each creditor in the same class is paid equally and without preference to one another. If there is not enough money in an insolvency to pay creditors in full, they will be paid pro rata on a pari passu basis,

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Jurisdiction(s):
United Kingdom
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Key definition:
Pari passu definition
What does Pari passu mean?

The right to be treated equally.

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