SENIORITY

The term seniority indicates the preference in position over other lenders. In case of bankruptcy, the subordinated lenders must respect the order of repayment by giving preference to specified creditors, but in any case senior debt ranks behind equity.
Bibliography
Ross S. A., Westerfield R.W., Jaffe J.(2002), Corporate Finance, McGraw- Hill Companies, Inc.
Editor: Bianca GIANNINI
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