Just so investors of equities understand the inherent risks of owning stock in a company, here is the hierarchy on who gets paid first in the event of liquidation.
1) Secured creditors get paid when the pledged property is sold or refinanced, then
2) Unpaid wages, then
3) Taxes, then
4) Trade creditors, then
5) Unsecured debtholders, then
6) Subordinated unsecured debtholders, then
7) Preferred stockholders, and finally, after all these other claims are met,
8) Common stockholders get whatever is left.
Showing posts with label debtholders. Show all posts
Showing posts with label debtholders. Show all posts
Wednesday, December 2, 2009
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