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what does this mean Distribution of $50K in Sisters at dissolution Under equitable subordination concepts: o No distribution to equity unless and until debt is
what does this mean Distribution of $50K in Sisters at dissolution Under equitable subordination concepts: o No distribution to equity unless and until debt is paid in full o No distribution to insider debt-holders unless and until senior, general, outsider debt is paid in full With only $50K to pay $120K in debt: EC's debt of $90K would have to be paid first, but only $50K in cash so after all cash assets used to pay EC, EC's deficiency of $40K would be left unpaid and no money to pay Deb and Jan on their notes, much less to pay them any liquidating dividends
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