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 ?
Seventy-five per cent of unsecured creditor votes are required in order to approve a CVA, coupled with a 50% + vote from unconnected companies in order to make sure that third party creditors are properly represented.
The total unsecured creditor position is around PS70m.
New Delhi: Reliance Communications sought another 60 days for repayment of Rs 550 crore to unsecured creditor Ericsson.
Private equity firm Abraaj said on Monday it hopes to reach a deal with its secured creditors, although sources said that a Kuwaiti unsecured creditor was holding out
trustee has the authority to appoint an official unsecured creditor's committee in a Chapter 11 case.
"I've no plans to re-enter business at the present time." Underlining the poor prospects of the politician getting any money from the liquidation as an unsecured creditor, liquidator Paul Mee told the Companies Office [euro]9,557 has been realised from the sale of assets to the end of March this year.
The largest unsecured creditor is the Central Bank of Bahrain, which was owed $255.1 million.
Contour's largest unsecured creditor is CM Medical LLC of Little Rock, which is owed $3.8 million.
Mr Sargent said: "A range of measures was introduced in 2010 to encourage greater unsecured creditor participation in the insolvency process, such as electronic communication and remote attendance at creditors' meetings, together with greater transparency and control for creditors in the process and over IP's fees.
is the company's largest unsecured creditor and is owed $3.78 million.
Alex Rodriguez, who, being Alex Rodriguez and the largest unsecured creditor (see the list of the 30 largest unsecured creditors (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4409:listing-of-the-top-30-unsecured-creditors-of-the-texas-rangers&catid=81:texas-rangers-bankruptcy&Itemid=188)), filed his own objection to the plan seeking verbiage within the plan that guarantees he receives his $24,892,061.62 in deferred compensation.
(75) Every unsecured creditor would be bound by this decision of the committee.