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 ?
Because all unsecured creditor claims will not 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.
Topics covered include: derivatives in restructuring transactions, limiting the priority for taxes in insolvency to enhance unsecured creditor recoveries, and practical advice for cross-border practitioners with regards to the prior recognition requirement of Chapter 15.
Alternatively, if the plan is not approved by the various unsecured creditor classes, such claims will be satisfied from 100% of the new Jamesway shares.
A reduction in trade credit to Lear from its suppliers could accelerate any bankruptcy, and could result in a high level of trade creditor claims being added to general unsecured creditor claims.
NEW YORK -- National Team to Continue Expansion of A&M's Advisory Services to Secured and Unsecured Creditor Groups
NASDAQ: STUSQ) announced that the company made its final cash payment to unsecured creditors by depositing today $5 million in an unsecured creditor's fund established under the company's plan of reorganization adopted in connection with the company's emergence from chapter 11 bankruptcy proceedings in October 1992.
In the alternative, an unsecured creditor may select a note in an amount equal to 80 percent of its allowed unsecured claim plus its proportionate share of 35 percent of the common stock of the reorganized company.
Wilmington Trust Company, which is the principal subsidiary of Wilmington Trust Corporation (NYSE:WL), is not, itself, the unsecured creditor.
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.
The largest unsecured creditor is reportedly Pension Benefit Guaranty Corp.
If the court invokes the fraudulent conveyance provision, it could invalidate the liens the lender holds, thus making it an unsecured creditor.
Under the plan, the overwhelming majority of Eastern's general unsecured creditors (over 70,000) will receive an 11 cent per dollar cash distribution during the first quarter of 1995.