UK house of lords hears SIV case, reports Reuters

Reuters reports that the UK house of lords – which serves as its highest court – is due to rule this week on the way that a bankrupt SIV should pay its creditors. The administrators for Sigma Finance, which was created by Gordian Knot, have asked the courts to rule on which of three proposals presented by creditors it should follow, according to the article.

Some creditors argue that debts within the first 60 days of the bankruptcy in October 2008 should be paid in the order in which they fell due. Others say that all debts coming due within the 60-day period should be pari passu. A third proposal is that all senior secured creditors should be treated pari passu.

See original article.