Waterfall: Difference between revisions
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imported>Doug Williamson (Add links.) |
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* [[Insolvency waterfall]] | * [[Insolvency waterfall]] | ||
* [[Junior debt]] | * [[Junior debt]] | ||
* [[Liquidation]] | * [[Liquidation]] | ||
* [[Preference]] | * [[Preference]] | ||
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[[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
