Waterfall: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update for LIBOR transition.) |
(Remove surplus link.) |
||
| (One intermediate revision by one other user not shown) | |||
| Line 12: | Line 12: | ||
#Connected unsecured creditors | #Connected unsecured creditors | ||
#Shareholders | #Shareholders | ||
Sometimes known as an ''insolvency waterfall''. | |||
| Line 43: | Line 46: | ||
* [[Floating charge]] | * [[Floating charge]] | ||
* [[Funding stack]] | * [[Funding stack]] | ||
* [[Insolvency waterfall]] | |||
* [[Junior debt]] | * [[Junior debt]] | ||
* [[Liquidation]] | * [[Liquidation]] | ||
* [[Preference]] | * [[Preference]] | ||
* [[Preferential]] | |||
* [[Preferential creditor]] | * [[Preferential creditor]] | ||
* [[Risk-free rates]] | * [[Risk-free rates]] | ||
| Line 59: | Line 63: | ||
[[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
