Administratively Insolvent

Describes a bankruptcy estate that lacks sufficient assets to pay in full the expenses and obligations incurred by the debtor during its Chapter 11 case. Where the debtor’s estate is administratively insolvent, postpetition creditors will not be paid in full and prepetition general unsecured creditors will not be paid at all.

Bankruptcy Code §§ 503, 507(b)(1). See also Insolvent.

Email Term