Definition
A creditor who does not hold any security interest over the debtor's assets. In the priority waterfall under SARFAESI/IBC, unsecured creditors rank after secured creditors. Under the IBC liquidation waterfall (Section 53), secured creditors are paid before unsecured financial creditors, who in turn rank before operational creditors.
Related Terms
PriorityIBC Waterfall
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Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates