Balance Sheet account. A long term liability (payable after twelve months from the Balance Sheet date) payable to a class of creditors whose rights are junior to some other class or classes of creditors of a business.
Debt which ranks for repayment of principal behind debt senior to it.
Debt which expressly has a lower priority for repa... Add a comment
Debt with inferior liquidation privileges to senior debt in case of a bankruptcy; sub debt will carry higher interest rates than senior debt, to which it is subordinated, to compensate for the added risk, and will typically have attached warrants or equity conversion features.
Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.
A debt with a lower priority claim on assets and earnings than other debt.
Unsecured bonds that rank behind other debt, but ahead of shareholders, in the event of liquidation. (See also Mezzanine Finance).
Debt that is either unsecured or has a lower priority than that of another debt claim on the same asset or property. also called junior debt. see also senior.
Debt which ranks after other forms of debt. e.g. institutional loan stock is subordinated to senior, mezzanine and junior debt.
If more than one lender has a lien on a property, the subordinated debt is paid after the debt of lien holders in superior (or first) positions.
a debt whose holders have a claim on the company's assets only after senior debtholders claims have been satisfied.
Refers to nonbank debt, which is by definition less secure than bank (or senior) debt. To attract lenders, borrowers often give subordinated lenders rights to convert their debt to equity.
Debt whose ranking has been subordinated or placed behind that of other secured/unsecured debts.
A financial instrument with qualities of both debt and equity, often used in transactions as an alternative, or complement to, pure equity. See also: Mezzanine Financing.
Debt which ranks for interest and repayment after all other obligations of a company
Debt which is issued on terms which stipulate that it will only be repaid once the claims of more senior creditors have been satisfied.
If a company is liquidated (i.e. becomes insolvent ), the secured creditors are paid first. If any money is left, the unsecured creditors are then paid. The amount of money owed to the unsecured creditors is termed the 'subordinated debt' of the company.
Debt capital provided to the Private Partner which ranks behind that provided by the Debt Funders in terms of priority of repayment, but which ranks ahead of equity provided by Equity Funders.
Any debt that is junior to other debts in establishing a claim against an asset(s).
Debt instrument "subordinated" to the lending done by institutions such as banks. This type of debt is viewed as equity and generally does not limit the company's borrowing power. Go to top of page
Debt that is repayable only after other debts have been repayed.
In the event of bankruptcy of the borrower, senior debt takes priority over subordinated debt in terms of repayment of the relative debt claims. Français: Dette subordonnée Español: Deuda no prioritaria
Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debt-holders receive payment only after senior debt is paid in full. A subordination of security interest in property allows another creditor to have the rights to the proceeds of the sale of that property before the claim of the subordinated creditor.
Unsecured bonds that in the event of liquidation, rank behind other debt, but ahead of shareholders.
A debt that is ranked lower than another security in the priority of its claim on the issuer's assets.
Debt that takes a lower priority than other debt if the event of the issuer's bankruptcy.... more on Subordinated debt
Unsecured debt which ranks below other lenders for repayment.
