Definition for : Creditor-friendly bankruptcy process

A creditor-friendly Bankruptcy process clearly sets the reimbursement of creditors as the main target of the Bankruptcy process. In addition, the Seniority of Debt is of high importance and is therefore recognised in the procedure. In this type of procedure, creditors gain control or at least retain a large amount of power in the process. This type of process usually results in the Liquidation of the firm.
(See Chapter 46 Leveraged buyouts (LBOs) of the Vernimmen)
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