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subordinated debts

 

Definitions from the Web

Subordinated Debts

Description:

In finance, subordinated debts refer to loans or financial obligations that hold a lower priority or "subordinate" status in terms of repayment. These debts are considered riskier compared to other debts in case of bankruptcy or liquidation. They are subordinate in priority to other debts and must be paid off only after the senior debts are settled.

Sample Sentences:

As a noun:

1. The company's subordinated debts had to be repaid after all the senior creditors were satisfied.
2. The bondholders holding subordinated debts were concerned about the company's financial instability.

As an adjective:

1. The subordinated debts restructuring plan was approved by the board of directors.
2. Investors may be reluctant to invest in subordinated debts due to the increased risk involved.

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