IndigoLearn

Forums

Back

Settling liabilities during liquidation

Accountancy

If a company has secured debentures, unsecured Deb., Secured creditors, unsecured creditors, then what will be the order of repayment to them by selling assets of co ? Does creditors of co. get privilege over debenture holders while repayment?

Garima Bhargava

CA Inter

★ 185

18-May-23 17:50

363

Answers (4)

Secured Debentures & Secured Creditors would be paid first. Unsecured would come next.

CA Suraj Lakhotia

Admin

22-May-23 11:37

CA Suraj Lakhotia Admin

Secured Debentures & Secured Creditors would be paid first. Unsecured would come next.

Ok sir, also debentures are always given priority over creditors while repayment?

Thread Starter

Garima Bhargava

CA Inter

★ 185

22-May-23 11:44

Unsecured debentures and unsecured creditors rank same.

CA Suraj Lakhotia

Admin

22-May-23 11:52

CA Suraj Lakhotia Admin

Unsecured debentures and unsecured creditors rank same.

Okk sir got it👍

Thread Starter

Garima Bhargava

CA Inter

★ 185

22-May-23 11:57