Secured debt

(redirected from Secured Debts)

Secured debt

Debt that has first claim on specified assets in the event of default.

Secured Debt

A debt on which payment is guaranteed by an asset or lien. This means that a secured debt has collateral; if the debtor does not repay the debt in due course, the creditor has the legal right to take possession of the collateral and resell it to recover losses. In case of bankruptcy, the creditor is considered a secured creditor, which means the creditor receives proceeds from the sale of the collateral to satisfy the debt. If the collateral is insufficient, all secured creditors must have their debts satisfied before any unsecured creditors receive any funds.
References in periodicals archive ?
The collateral package pledged to AES' secured debts consists of all of the capital stock of AES' material domestic subsidiaries and 65% of the capital stock of AES' foreign subsidiaries.
The newly assigned 'B+' rating of AES' junior secured debt reflects the strong residual asset coverage available for the holders of these instruments, after considering the structurally senior claims of AES subsidiaries' individual debts and higher ranking claims of AES Corp's parent-level first priority senior secured bank debt and senior secured notes.
has yet to complete the restatements of its 2002 quarterly financial statements and issue its 2002 financial statements, without which the AYE or AE Supply cannot access the public capital markets, sell certain assets, or secure approval from the SEC to issue additional secured debts.
The ratings also consider the adequate residual asset coverage afforded to the existing unsecured debt classes after the expected repayment of the senior secured debt.