Had the federal appellate court ruled that the bankruptcy attorneys had subordination rights (the ability to subordinate the rights of other claimants), what would have happened?

The correct answer is : The tax authorities would have received less money

Explanation:

Let's take into account that subordination adjusts the priority of the new loan and a creditor is placed in a lower priority for the collection of its debt. So, The amount of money that the bankruptcy lawyer could have received would be $200,000. On the other hand, the tax authorities would have received less than that