2. Background
In August 1998 the Ministry invited the Law Commission ("the Commission") to provide advice on whether existing classes of preferred creditors should continue to enjoy advantages over unsecured creditors in the event of bankruptcy or liquidation. The Commission sought and received submissions on the review from interested organisations and individuals.
In October 1999, the Commission released a study paper "Priority Debts in the Distribution of Insolvent Estates". The Ministry of Economic Development received a number of submissions on that paper. This discussion document reviews the Commission's study paper, the submissions received and the results of further research and analysis undertaken by the Ministry.
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