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. | |||
| Line 17: | Line 33: | ||
Abbreviation for ''waterfall methodology''. | Abbreviation for ''waterfall methodology''. | ||
== See also == | == See also == | ||
* [[Agile]] | * [[Agile]] | ||
* [[Connected company]] | |||
* [[Connected person]] | |||
* [[Court]] | |||
* [[Creditors]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Fallback]] | |||
* [[Fixed charge]] | |||
* [[Floating charge]] | |||
* [[Funding stack]] | * [[Funding stack]] | ||
* [[Insolvency waterfall]] | |||
* [[Junior debt]] | * [[Junior debt]] | ||
* [[Liquidation]] | * [[Liquidation]] | ||
* [[Preference]] | |||
* [[Preferential]] | |||
* [[Preferential creditor]] | * [[Preferential creditor]] | ||
* [[Risk-free rates]] | * [[Risk-free rates]] | ||
* [[Secured creditor]] | |||
* [[Security]] | |||
* [[Senior debt]] | * [[Senior debt]] | ||
* [[Seniority]] | * [[Seniority]] | ||
* [[Subordinated debt]] | * [[Subordinated debt]] | ||
* [[Unsecured debt]] | |||
* [[Valuation]] | * [[Valuation]] | ||
* [[Waterfall methodology]] | * [[Waterfall methodology]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category: | [[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: | [[Category:The_business_context]] | ||
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:
- 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.
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
- Agile
- Connected company
- Connected person
- Court
- Creditors
- Equity
- Fallback
- Fixed charge
- Floating charge
- Funding stack
- Insolvency waterfall
- Junior debt
- Liquidation
- Preference
- Preferential
- Preferential creditor
- Risk-free rates
- Secured creditor
- Security
- Senior debt
- Seniority
- Subordinated debt
- Unsecured debt
- Valuation
- Waterfall methodology
