preferred creditor

(redirected from Preferential creditor)
Also found in: Wikipedia.

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The report adds: "It is anticipated that preferential creditor claims will be paid in full and there will be a distribution to unsecured creditors."
Preferential creditor claims worth around PS97,400 are also anticipated to be repaid in full, while unsecured creditors "should receive a dividend".
2 of 2009 (as amended) and Article 93 of the DIFC Insolvency Law) and the DIFC Preferential Creditor Regulations.
Preferential creditor rights allow sovereign entities such as the Public Tax Authority and banks established under special laws-- and they are three banks operating in Egypt-- the right to receive their dues before any other entity.
Bladex's Baa2 senior debt rating reflects the bank's high quality loan portfolio, preferential creditor treatment, and strong tier one capitalization.
And now the banks expect to be treated as a preferential creditor?
* 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.
The Insolvency Law, issued in September 2004, set out provisions for preferential creditor regulations (Article 67 [2]) to be passed at a subsequent date and it is in this context that these regulations have been drawn up.
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.
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.
Full browser ?