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Tort claims are unsecured obligations in a firm's capital structure. As a result, many academics have argued that the priority given to secured credit results
Tort claims are unsecured obligations in a firm's capital structure. As a result, many academics have argued that the priority given to secured credit results in appropriation of value from tort victims (given that, once the secured creditors are paid, there may be nothing left for tort victims to recover). Should the absolute priority rule be revised to account for this?
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