To what does the absolute priority rule refer?

Question

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The absolute priority rule refers to the order in which a bankrupt firm's investors are paid. This rule states that senior bondholders are paid first, then junior bondholders, then preferred shareholders, and finally common shareholders. This ensures that investors with higher priority receive payment before those with lower priority. The absolute priority rule refers to the order in which investors are paid in the event of liquidation. Senior bondholders are paid first, followed by junior bondholders, then preferred shareholders, and finally common shareholders. This ensures that investors with higher priority receive payment first and that common shareholders are the last to receive any remaining assets.

To What Does the Absolute Priority Rule Refer