Claims of creditors under a DOCA are discharged and extinguished under a cl 12.1-type provision only upon final distribution of the entire Distribution Fund to all creditors, not upon partial distribution to some creditors. A subordination clause does not remove subordinated creditors from the distribution mechanism but merely ranks their entitlements below those of other creditors. Where a company in liquidation or subject to a DOCA has an insurance policy responding to the plaintiff's claim, and the plaintiff limits recovery to insurance proceeds, leave to proceed will generally be granted.
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