Preferential creditor

17.07.2013 20:52

Preferential creditor

1) In event of business liquidation/bankruptcy, creditor who has preferential claim on assets ahead of ordinary trade creditors, etc (but not Inland Revenue for tax and NI, Customs and Excise for VAT and other taxes, etc).

For example, employees are preferential creditors for any wage/salary due as are debenture holders.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.189 (288 p.)




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