unsecured creditors

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 creditors

Persons owed money by a debtor,but who have no collateral as security for the debts owed to them.

References in periodicals archive ?
Final restructuring documents were sent to unsecured creditors on Wednesday and a meeting with bankers is scheduled to take place in Dubai on May 15, two sources familiar with the negotiations said, speaking on condition of anonymity as the information isn't public.
Bankruptcy Judge Albert Radcliffe in Eugene required Country Coach to file a list of its top 20 unsecured creditors.
Delta Air Lines should "consider methodically, proactively and fairly strategic alternatives to its standalone Chapter 11 plan," a group of "unofficial" unsecured creditors said last week in a statement.
The plan states that unsecured creditors with claims of less than USD50,000 would receive 10%, up to USD5,000, while unsecured creditors with claims larger than USD50,000 will receive stock in the merged airline, The Associated Press reported.
In a Chapter 7 liquidation, after the secured creditors are paid, unsecured creditors are paid strictly according to their Bankruptcy Code Section 507 priority class.
Creditors want to have the ability to challenge any plan that doesn't pay unsecured creditors in full.
Alexander's also announced that it had entered into an agreement with the Official Committee of Unsecured Creditors on terms for an extension of up to March 31, for the final payment of approximately $28 million due general unsecured creditors under the company's plan of reorganization.
To satisfy the exception's de minimis requirements, unsecured creditors must emerge with at least 15% of the value of debtors' outstanding stock.
For example, unsecured creditors cannot receive any monies for their prior claims.
A sale of the assets of ERG itself would not realize sufficient cash to satisfy any of the unsecured creditors.
CHICAGO -- Levenfeld Pearlstein's bankruptcy group has proven that Chapter 11 matters can be resolved quickly and efficiently for both secured and unsecured creditors.