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 ?
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.
S&P noted that DBSA faces a different competitive environment in lending in the African regional space, competing with other development financial institutions that offer lending at concessional rates, have multiple government ownership, and also benefit from preferred creditor status as multilateral institutions.
In their claim, LFL say they have acquired rights over that debt from Wavetower which makes them a preferred creditor.
The ECB agreed to give up preferred creditor status, which could have frightened away countries' other creditors afraid they would take all the losses in case of a default.
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.
Euro-area officials agreed to drop the condition that emergency loans to Spanish banks give their governments preferred creditor status, European Union President Herman Van Rompuy told reporters after a summit in Brussels.
HMRC's interest in football started in 2003 when Leicester went into administration and took out the Revenue's preferred creditor status.
However, exposure to credit risk is mitigated by strict internal country and counter-party limits, and by preferred creditor status, which grants the bank priority over other creditors in a sovereign default.
As a preferred creditor, COE should receive some payment because Jaguar Cars' paid pounds 143,000 into the administration in respect of outstanding debt, with another pounds 46,000 from Jaguar subject to talks.
He also explores concepts such as sustainability, macroeconomic forecasts, ownership, and preferred creditor status in terms of the relevance to the MDGs.