FinanceAdvisor

An unsecured creditor is a creditor which is not a preferential creditor and which does not have the benefit of any security interests over the assets of the debtor.

In the event of the bankruptcy of the debtor, the unsecured creditors usually obtain a pari passu distribution out of the assets of the insolvent company on a liquidation in accordance with the size of their debt after the secured creditors have been enforced their security and the preferential creditors have exhausted their claims. continued…

A United States bankruptcy court is a federal court that has subject matter jurisdiction over bankruptcy cases. Bankruptcy cases cannot be filed in state court. Each of the 94 federal judicial districts handles bankruptcy matters.

The bankruptcy judges in each judicial district in regular active service constitute a “unit” of the applicable United States district court (see 28 U.S.C. § 151). continued…

In many legal systems, where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair preference.[1]

The law on unfair preferences varies from country to country, but characteristically, to set a transaction or payment aside as an unfair preference, the liquidator will need to show that: continued…

An undervalue transaction is a transaction entered into by a company[1] who subsequently goes into bankruptcy which the courts subsequently set aside, usually upon the application of a liquidator for the benefit of the debtor’s creditors.[2]

Under ordinary principles of contract law, the courts will not generally look into the adequacy of the consideration provided by either side. continued…

A trustee in bankruptcy (”TIB”), in United States bankruptcy law, is a person appointed by the Bankruptcy court to oversee the distribution of the assets of a bankrupt to his creditors. continued…

In many legal systems, once a company becomes insolvent, the directors have to take particular care. Under UK law, trading whilst insolvent can trigger several provisions under the Insolvency Act 1986 which may have the effect of making directors of a company personally liable to contribute to the assets of a company. continued…

This is a timeline of bankruptcies affecting airlines which are still currently operating. See the list of defunct airlines for those which have gone bankrupt and stopped operating. continued…

Superintendent of Bankruptcy (Canada)

The role of the Superintendent of Bankruptcy is to ensure that bankruptcies and insolvencies in Canada are conducted in a fair and orderly manner.

As stated on the Office of the Superintendent of Bankruptcy Website: continued…

A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation (usually but not always the payment of a debt) which gives the beneficiary of the security interest certain preferential rights in relation to the assets. The rights vary according to the type of security interest, but in most cases (and in most countries) the main rights and purpose of the security interest is to allow the holder to seize, and usually sell, the property to discharge the debt that the security interest secures. continued…

A secured creditor is a creditor which has the benefit of a security interest over some or all of the assets of the debtor.

In the event of the bankruptcy of the debtor, the secured creditor can enforce their security against the assets of the debtor, continued…