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 ?
The Richmond-headquartered company's unsecured creditors first objected to the proposed debtor-in-possession funding, which will be given by a syndicate of lenders.
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.
A creditors' committee, which represents the interests of all of the debtor's unsecured creditors, usually consists of the debtor's largest unsecured creditors.
But an attorney for the committee for unsecured creditors, Donald Detweiler, told the judge that the sale appears to benefit only the two lenders.
Unsecured creditors owed a total of 16m [pounds sterling] by Kwik Save have failed in their bid to force a creditors' meeting.
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.
R3 research has consistently shown that unsecured creditors receive minimal returns from insolvent debtors.
The next largest unsecured creditors are NHL Players Association ($3,880,000) and NHL Enterprises ($3,163,000).
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.