Waterfall

1. Liquidation - claims.

The priority order of claims in a liquidation.

Broadly speaking, this priority order is:

1. Secured creditors
2. Preferential creditors
3. Fixed charge creditors
4. Floating charge creditors
5. Unsecured creditors
6. Connected unsecured creditors
7. Shareholders

Sometimes known as an insolvency waterfall.

Breaching this ordering is a preference, that can be effectively reversed by an order of the court.

2. Liquidation.

The allocation of - usually limited - available funds in this priority order in a liquidation.

3. Allocating limited funds.

Any other ranked allocation of funds.

4. Risk-free rates - valuation.

Abbreviation for waterfall methodology.

See also

• Agile
• Connected company
• Connected person
• Court
• Creditors
• Equity
• Fallback
• Fixed charge
• Floating charge
• Funding stack
• Insolvency waterfall
• Junior debt
• LIBOR
• Liquidation
• Preference
• Preferential
• Preferential creditor
• Risk-free rates
• Secured creditor
• Security
• Senior debt
• Seniority
• Subordinated debt
• Unsecured debt
• Valuation
• Waterfall methodology