preferred creditor

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.
References in periodicals archive ?
Preferred Creditor Status of IDB to Costa Rica: Historically, sovereigns have prioritized certain obligations, such as obligations from multilateral development banks (MDBs), when the government cannot service all of the country's external debt.
Fitch asserts that the relatively high risk profile of borrowers is mitigated by the preferred creditor status (PCS) that the Bank enjoys on its sovereign exposures.
Section 133 of the FRIA also requires in no uncertain terms that the '[l]iquidation Plan and its implementation shall ensure that the concurrence and preference of credits as enumerated in the Civil Code of the Philippines and other relevant laws shall be observed, unless a preferred creditor voluntarily waives his preferred right.
Gabon's membership enables AFC to receive preferred creditor status within the country, reducing AFC's investment risk, enabling it to provide more competitive financing solutions.
AIIB imposes enforces environmental demand in paying out its loans as opposed to other multilateral lenders such as Asian Development Bank or the World Bank making it the preferred creditor for funding Indonesia's coal-fired power plant projects.
In their claim, LFL say they have acquired rights over that debt from Wavetower which makes them a preferred creditor.
preferred creditor status are among its other credit strengths.
As a logical matter, if the IMF or some other multilateral lender such as the World Bank, was an unsecured creditor without any de jure preferred creditor status, payments to it in all future cases were now open to attack under the same theory that NML had used against other creditors.
Certainly it is helpful if there is an unlimited amount possible and also if the ECB will refrain from holding a preferred creditor status.
Even if the ECB is able to credibly pre-commit not to exercise its preferred creditor status in the event of default, its bond purchases are likely to be associated with EFSF/ESM bond purchases/lending, implying some subordination of private creditors.
A June 29 statement from the 17 euro-area leaders stripping the European Stability Mechanism of its preferred creditor status in Spain was incomplete, said Martti Salmi, a Finnish Finance Ministry official.