unsecured creditor


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Unsecured Creditor

One who is owed an uncollateralized debt. That is, an unsecured creditor has no lien or collateral on the debt. An unsecured creditor has no right to repossess any property in the event of default or bankruptcy. In the event of liquidation of the debtor's property, the unsecured creditor receives nothing until all secured creditors are repaid in full. Because of the extra risk associated with unsecured credit, it usually commands a higher interest rate. See also: Secured creditor.

unsecured creditor

A creditor with a claim for which no specific assets are pledged. A debenture holder is an unsecured creditor. Compare secured creditor.

unsecured creditor

see CREDITORS.
References in periodicals archive ?
MFGI) said it has initiated the final, cumulative 95 percent distribution on all non-affiliate, non-subordinated, allowed general unsecured creditor claims, by mail and other distribution methods.
A committee may also include a variety of different creditor interests, such as trade creditors, bondholders, unions, the Pension Benefit Guaranty Corporation, landlords, tort and personal injury claimants, and other unsecured creditor constituencies.
The largest unsecured creditor is reportedly Pension Benefit Guaranty Corp.
Major League Baseball Properties is listed by Pinnacle Brands as the largest unsecured creditor in Pinnacle Chapter 11 bankruptcy filing late last month in U.
If the court invokes the fraudulent conveyance provision, it could invalidate the liens the lender holds, thus making it an unsecured creditor.
One unanswered question is whether a creditors' committee must establish and maintain an Internet website that would provide information about the debtor and its Chapter 11 case to, and solicit comments from, its unsecured creditor constituents.
Wilmington Trust, a leading provider of institutional trustee, agency, and administrative services through its Corporate Client Services (CCS) business, announced today that it has been appointed as trust administrator of the general unsecured creditor trust in the bankruptcy case of General Motors Corporation, now known as Motors Liquidation Company.
As a practical matter, plans of reorganization are difficult to confirm if the debtor does not obtain acceptance of the plan by the general unsecured creditor class.
An unsecured creditor supported the debtor's motion, asserting that the appointment of a creditors' committee would diminish the funds available for unsecured creditors and that anything detracting from the debtor's ability to operate its business was not desirable.
34) The best interest of creditors test provides that the total amount of the payments to the creditor, discounted to present value, must at least equal the amount the unsecured creditor would receive out of the estate in a straight liquidation.
Because not all unsecured creditor claims will be satisfied in full, the pre-petition equity holders' interests in Northwest's common and preferred stock will be cancelled, and those holders will not receive a distribution.
First, a cramdown plan is fair and equitable if an unsecured creditor class receives property with a present value equal to the full amount of its claims as of the effective date of the plan.