creditors


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Creditor

A person or company to whom one owes money. A creditor may be a bank or another company. In the case of bonds and personal debt, the creditor is often an individual. A creditor may be secured, meaning that the debt has a collateral, or unsecured, meaning that the debt has no specific collateral.

creditors (accounts payable)

the money owed to individuals or firms because they have supplied goods, services or raw materials for which they have not yet been paid (trade creditors), or because they have made LOANS. Amounts falling due for payment within one year are counted as part of a company's CURRENT LIABILITIES in its BALANCE SHEET, while amounts falling due after more than one year appear as part of long-term liabilities.

Some creditors, called secured creditors, are offered collateral or security for their loans by means of a fixed charge on a specific asset owned by a debtor, which they could legally claim in the event of default on the loan.

Other secured creditors are offered security by means of a ‘floating charge’ on the debtors' assets, which would offer them priority in claiming the proceeds from the sale of these assets in the event of default. Unsecured creditors such as trade creditors have less security in the event of default. See DEBTORS (ACCOUNTS RECEIVABLE), CREDIT. CREDITORS RATIO.

References in periodicals archive ?
On March 25, 2015, the Official Committee of Unsecured Creditors (the "Committee") appointed in the bankruptcy case sued Tyson to avoid and recover, as preferences, several payments totaling nearly $14 million by the Debtors to Tyson within 90 days of the bankruptcy filing.
These options hopefully provide trade creditors with ideas of how to obtain cash-on-delivery terms with a bankrupt customer.
A safe harbor for creditors is plausible--if courts could reduce the extent of creditor conflict for critical decisions--and would both encourage constructive creditor intervention and discourage detrimental, value-shifting creditor intervention.
The Law stipulates a specific mode of protection of rights for major creditors of the company.
In a wide-ranging conference call with analysts, Parker said US management felt it was necessary to respond strongly to US Airways's assertions that its standalone reorganization plan offered more value to creditors than US's $8 billion takeover proposal and that the US Dept.
That's just one method for creditors to collect payment.
This sentiment is succinctly summarized by the often-repeated statement that a firm has "sought bankruptcy protection from its creditors.
It distributes a debtor's property equitably among creditors and enables the debtor to start afresh.
One tool often overlooked in this regard, however, is the irrevocable third-party trust (TPT), which combines the benefits of owning assets and possibly conducting a business, without the drawbacks of estate taxation and accessibility by creditors.
As authorized by the FACT Act, the agencies have expanded the scope of the rules so that the exceptions will apply to all creditors, not just to creditors ordinarily regulated by one of the agencies.
The goal is to permit debtors' going-concern value to be preserved and shared equitably among both existing creditors and future claimants, instead of being dismembered in a Chapter 7 "fire sale" liquidation with current creditors receiving far less and future claimants receiving nothing.
Negotiations between Argentina and its creditors have been anything but smooth.