L3VLUP

Contractual Subordination

An agreement that a class of debt will not be paid until a named senior class is paid in full. In a distribution the subordinated class’s pro rata share is turned over to the senior class until it is whole; creditors who are not party to the agreement, such as trade creditors, do not benefit.

Keep reading

Credit and restructuring models

Related Restructuring terms

Go further than reading

The written material is free. These are the ways to get it applied to your own work.

Browse the full glossary — 329 finance recruiting and technical terms, in plain English.