Give me my money! - "What is a Creditor?"

It is not as simple as you may think!!

Creditor:

A party to whom money is owed. Common classifications of a creditor include:

 (1) Secured: who has a legal right to take a specific property of the borrower and sell it in case of a default. 

(2) Unsecured: who does not have any such right. 

(3) Preferential or senior: who takes precedence over other creditors in laying claim to a bankrupt borrower's property. 

(4) Junior: whose claim is addressed after satisfying the claims of preferential or senior creditors.

The corporate world many a times is not as simple as it seems on the 'face value'..... 

oops..."Whats' Face Value ?"

Wait and watch !!

Rgds.