DEEP ROCK DOCTRINE

Deep  Rock  doctrine.Bankruptcy.  The  principle  by  which  unfair  or  inequitable  claims

presented by controlling shareholders of bankrupt corporations may be subordinated to claims of

general or trade creditors. • The doctrine is named for a corporation that made fraudulent transfers

to its parent corporation in Taylor v. Standard Gas & Elec. Co., 306 U.S. 307, 59 S.Ct. 543 (1939).

[Cases: Bankruptcy    2968. C.J.S. Bankruptcy § 264.] [Blacks Law 8th]