Waterfall: Difference between revisions

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The priority order of claims in a liquidation.
The priority order of claims in a liquidation.
Broadly speaking, this priority order is:
#Secured creditors
#Preferential creditors
#Fixed charge creditors
#Floating charge creditors
#Unsecured creditors
#Connected unsecured creditors
#Shareholders
Sometimes known as an ''insolvency waterfall''.
Breaching this ordering is a ''preference'', that can be effectively reversed by an order of the court.




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4. ''Risk free rates.''
4. ''Risk-free rates - valuation.''


Abbreviation for ''waterfall methodology''.
Abbreviation for ''waterfall methodology''.
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== See also ==
== See also ==
* [[Agile]]
* [[Connected company]]
* [[Connected person]]
* [[Court]]
* [[Creditors]]
* [[Equity]]
* [[Equity]]
* [[Fallback]]
* [[Fixed charge]]
* [[Floating charge]]
* [[Funding stack]]
* [[Funding stack]]
* [[Insolvency waterfall]]
* [[Junior debt]]
* [[Junior debt]]
* [[LIBOR]]
* [[Liquidation]]
* [[Liquidation]]
* [[Preference]]
* [[Preferential]]
* [[Preferential creditor]]
* [[Preferential creditor]]
* [[Risk free rates]]
* [[Risk-free rates]]
* [[Secured creditor]]
* [[Security]]
* [[Senior debt]]
* [[Senior debt]]
* [[Seniority]]
* [[Subordinated debt]]
* [[Subordinated debt]]
* [[Unsecured debt]]
* [[Valuation]]
* [[Waterfall methodology]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]
[[Category:Identify_and_assess_risks]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 04:05, 5 October 2024

1. Liquidation - claims.

The priority order of claims in a liquidation.

Broadly speaking, this priority order is:

  1. Secured creditors
  2. Preferential creditors
  3. Fixed charge creditors
  4. Floating charge creditors
  5. Unsecured creditors
  6. Connected unsecured creditors
  7. Shareholders


Sometimes known as an insolvency waterfall.


Breaching this ordering is a preference, that can be effectively reversed by an order of the court.


2. Liquidation.

The allocation of - usually limited - available funds in this priority order in a liquidation.


3. Allocating limited funds.

Any other ranked allocation of funds.


4. Risk-free rates - valuation.

Abbreviation for waterfall methodology.


See also