Senior unsecured creditor

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The normal place for a creditor who has not agreed some form of security-based credit enhancement with the debtor. You rank ahead of equity holders and other subordinated creditors, but (to the extent of their security) behind secured creditors.

Unless you have made special arrangements otherwise, you are likely to be a senior unsecured creditor of anyone who owes you money.

Sometimes, a little confusingly, called pari passu - but that just means “ranking equally”, so isn't specific to senior unsecured creditors. Subordinated creditors also rank pari passu, amongst themselves.

See also

• Capital structure