Unsecured debt is the amount of debt that is not secured with any collateral. The lenders like banks normally lend money to companies based on the credit score. The customers with good credit scores are often not asked for collateral and issued unsecured debt. Unsecured loans are risky for lenders because there are no valuable items backing the debt and for this unsecured debts are often available at higher interest rates to compensate the inherent default risk.
Unsecured debts are also paid after secured debts in case of liquidation or bankruptcy of the borrower. Since the bankruptcy will use all the secured assets first to pay the secured debts and the rest is used proportionately among unsecured debts, the full payment is not possible in some cases.
The 2018 annual report of MLS Corporation included the following disclosure note
The trustee in the bankruptcy settlement for Titanic Boat Co. lists
Two depository institutions have composite CAMELS ratings of 1 or 2 and
a. As a senior bondholder, would you like the company
In August, 1985, Tia Carrere (“Carrere”) entered into
Four years ago, Mr. Bates purchased 1,000 shares
Exhibit 11.15 presents excerpts from the notes to the financial
The 2020 annual report of Mills General Corporation (MGC) included
Refer to the annual report for Spin Master presented. Note 15
