Also known as the Deep Rock Doctrine. Occurs only in bankruptcy. If it is equitable to do so the bankruptcy court will recognize the insiders' claims against the corporation, but will require that these claims be satisfied only after all other creditors have been fullied satisfied. It occcurs when the court subordinates a shareholder's loan to the debts owed by the corporation to other creditors. usually means that the insiders receive nothing many of the same factors that would induce peircing the corporate veil may induce equitable subordination.