Examples of First Priority Claims in a sentence
If the District Court rules that all Allowed and allowable First Priority Claims and all Allowed and allowable Litigation Payments have been paid or that adequate provision has been made to assure such payment (along with administrative costs) based on the available assets, then the Second Priority Payments, or some portion thereof, may be distributed, unless the order of the District Court is stayed or reversed on appeal.
As the Sixth Circuit ruled, this means that the Court must determine whether it has been shown that there is a “virtual guarantee” that all First Priority Claims will be paid before authorizing any Second Priority Payment.
The Court further finds there is adequate provision or a “virtual guarantee” that Allowed and allowable First Priority Claims will be paid based on the available assets.
The Plan allows the Court to grant authorization of any Second Priority Payment after a hearing is held and determines that “all Allowed and allowable First Priority Claims and all Allowed and allowable Litigation Payments have been paid orthat adequate provision has been made to assure such payment .
Section 7.03 of the Settlement Facility Agreement provides that “Second Priority Payments, or some portion thereof, may be distributed” as long as adequate provision has been made to assure payment of First Priority Claims.