unsecured liability

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Related to unsecured: unsecured bond, Unsecured creditor, Unsecured Loans

Unsecured Liability

A debt or other liability that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. This means that an unsecured liability carries no collateral; in case of bankruptcy, the bondholder is considered a general creditor. Thus, the bondholder is paid out of funds that do not have a prior claim on them with a secured debt. Like most bonds, an unsecured bond is tradeable. Some unsecured bonds, such Treasury securities, are considered risk-free.

unsecured liability

A liability for which no specific collateral is held by a creditor. Essentially, payment on an unsecured liability is assured by the promise of the borrower.
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Once claims are filed, they are preliminarily sorted into secured claims and unsecured claims.
Millennium Cell filed a Current Report on Form 8-K with the SEC on Friday, February 16, 2007, that sets forth the terms and conditions of the Unsecured Debentures, the warrants and the other related offering documents.
The court stated in "either circumstance--no actual liability for the interest until the happening of a future event or the economic improbability of payment--furnishes grounds for disallowing the accrual and deduction of interest on unsecured claims.
In the event of an LBO financed with secured debt, some protection could be afforded to existing unsecured bondholders by provisions in the indenture covering the two primary sets of unsecured notes in Con-way's capital structure.
In addition, Fitch upgrades the following national scale ratings on Vitro's outstanding senior unsecured certificates:
The sustained Rating Watch Negative status acknowledges the potential for Reckson OP's IDR and bonds to migrate below 'BB+', considering the absence of structural firewalls to support Reckson OP's unsecured bondholders.
The senior notes will be used to refinance the $600 million senior unsecured credit facility of Intelsat Bermuda, which is a subsidiary of Intelsat, Ltd.
Distributions from the remaining 214,544 shares of common stock reserved for issuance to holders of allowed general unsecured claims by the Plan will take place on a periodic basis.
In the event that the senior unsecured and senior subordinated note offerings are not completed by the transaction's close, ARAMARK has in place a committed bridge loan facility to fund the remainder of the transaction's purchase price.
Fitch's affirmation of the IDR and senior unsecured debt rating takes into account the substantial unencumbered assets of $1,332 million as of Sept.
ACAS has issued, through private placements, $368 million of unsecured term debt since September 2004 and has increased the size of its unsecured revolving bank facility from $255 million to $900 million.