Waterfall

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

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
• Junior debt
• LIBOR
• Liquidation
• Preference
• Preferential creditor
• Risk-free rates
• Secured creditor
• Security
• Senior debt
• Seniority
• Subordinated debt
• Unsecured debt
• Valuation
• Waterfall methodology