Subordinated Debt

Herausgegeben:Surhone, Lambert M.; Timpledon, Miriam T.; Marseken, Susan F.

• Broschiertes Buch

Produktbeschreibung

High Quality Content by WIKIPEDIA articles! In finance, subordinated debt is debt which ranks after other debts should a company fall into receivership or be closed. Such debt is referred to as subordinate, because the debt providers (the lenders) have subordinate status in relationship to the normal debt. A typical example for this would be when a promoter of a company invests money in the form of debt, rather than in the form of stock. In the case of liquidation (e.g. the company winds up its affairs and dissolves) the promoter would be paid just before stockholders -- assuming there are assets to distribute after all other liabilities and debts have been paid. Subordinated debt has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy, below the liquidator, government tax authorities and senior debt holders in the hierarchy of creditors. Because subordinated debt is repayable after other debts have been paid, they are more risky for the lender of the money. It is unsecured and has lesser priority than that of an additional debt claim on the same asset.

Produktdetails

• Verlag: Betascript Publishing
• Seitenzahl: 72
• Englisch
• ISBN-13: 9786130505882
• ISBN-10: 6130505884
• Artikelnr.: 28966525