Waterfall: Difference between revisions
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imported>Doug Williamson (Update for LIBOR transition.) |
imported>Doug Williamson (Add links.) |
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#Connected unsecured creditors | #Connected unsecured creditors | ||
#Shareholders | #Shareholders | ||
Sometimes known as an ''insolvency waterfall''. | |||
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* [[Floating charge]] | * [[Floating charge]] | ||
* [[Funding stack]] | * [[Funding stack]] | ||
* [[Insolvency waterfall]] | |||
* [[Junior debt]] | * [[Junior debt]] | ||
* [[LIBOR]] | * [[LIBOR]] | ||
* [[Liquidation]] | * [[Liquidation]] | ||
* [[Preference]] | * [[Preference]] | ||
* [[Preferential]] | |||
* [[Preferential creditor]] | * [[Preferential creditor]] | ||
* [[Risk-free rates]] | * [[Risk-free rates]] | ||
Revision as of 14:10, 23 April 2023
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
- LIBOR
- Liquidation
- Preference
- Preferential
- Preferential creditor
- Risk-free rates
- Secured creditor
- Security
- Senior debt
- Seniority
- Subordinated debt
- Unsecured debt
- Valuation
- Waterfall methodology
