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KembaraXtra – Legal Terms – Pari Passu
Pari passu is a Latin phrase meaning “with equal step” or proportionally.
The principle requires competing claims to be treated equally without preference.
It is commonly applied in bankruptcy and insolvency proceedings.
Assets are distributed among creditors on a pro rata basis according to the size of their claims.
The concept promotes fairness in the distribution of limited assets.
Pari passu is a Latin phrase meaning “with equal step” or proportionally.
The principle requires competing claims to be treated equally without preference.
It is commonly applied in bankruptcy and insolvency proceedings.
Assets are distributed among creditors on a pro rata basis according to the size of their claims.
The concept promotes fairness in the distribution of limited assets.
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