preferred creditor

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preferred creditor

A creditor having priority to payment over one or more other classes of creditors. For example, holders of first mortgage bonds must be paid by the borrower before payments are made to holders of second mortgage bonds on the same collateral. First mortgage bondholders are the preferred creditors.
References in periodicals archive ?
To date the winding up board of Landsbanki has made distributions to the council as a preferential creditor in February, May and October 2012, totalling PS1.
The club's debt is now owed via a debenture to ARVO, a SISU owned company in the Cayman Islands - is the purpose of this to give preferential creditor status in the eyes of an administrator or to maximise any returns in the event of liquidation?
American Greetings placed itself in pole position to buy the chain after it snapped up Clinton's pounds 35m bank debt, making it a preferential creditor and giving it a strong position in sale talks.
The Dubai International Financial Centre (DIFC) today issued a consultation paper to seek comment on new Preferential Creditor Regulations under the DIFC Insolvency Law of 2004.
Dubai: The Dubai International Financial Centre (DIFC) yesterday issued a consultation paper to seek comments on the new Preferential Creditor Regulations under the DIFC Insolvency Law of 2004.
The proposed DIFC Preferential Creditor Regulation is being posted on the DIFC website on March 20 for a period of 30 days for public consultation, the statement said.
For those who have been made redundant, the outlook may look bleak, but it is important to remember that they are entitled to certain protection from the National Insurance Fund and will be able to claim as a preferential creditor against the assets of Kwik Save, once they have been realised.
The group that included Farepak will have assets such as property, vehicles, computers, outstanding debts owed to them plus many others, unfortunately as things stand at present, as a preferential creditor the treasury has the right to take any tax it is owed before anyone else especially the savers get a look in.
Ohio-based American Greetings placed itself in pole position to buy the chain after it snapped up Clinton's pounds 35m bank debt, making it a preferential creditor and giving it a strong position in sale talks.
A number of local authorities in the UK, who were hit by the meltdown of Landsbanki three years ago, have been awarded preferential creditor status and moves are now being made to recover their cash.
The latest administrator report stated: "It is anticipated there will be insufficient funds to make a distribution to preferential creditor.
Many of the 900 former LDV workers with preferential creditor status have already been dealt with under statutory government procedures, receiving money for holiday and arrears pay.
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