PDSnet Glossary

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Definition

Debt which ranks above junior or mezzanine debt on liquidation. On liquidation, the liquidator will sell the assets of the company and then pay out the senior debt followed by the junior debt, followed by the preference shareholders and finally the ordinary shareholders. Senior debt is not secured debt. Secured debt is secured against a specific asset, like a piece of land, the proceeds of which must be used to pay out the secured debt.

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