Liquidation Preference Q - First-Out/Last-Out
Hey guys, this might be a silly question, but hoping that someone will humor me. In the event that a company is liquidated and it has, say, an outstanding $10 million 1st lien term loan ($5 million first-out, $5 million last-out), what does the repayment look like? I know that both the first-out and last-out have the same 1st lien on the assets, but would the first-out get repaid first?
