Seniority - Trade Credit vs Senior note?

Hi everyone:

In general, how would you determine if Trade Credit is senior to a Senior note, esp. in a bankruptcy scenario please? Can I assume that Trade Credits are pari passu with senior note, or is there a specific subsection of the indenture that might mark this out?

Thanks!

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2 Comments

CU04

PE

7y

Also, I'm just curious - why do companies issue "subordinated senior notes"? it just seems a bit of an oxymoron to me.

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Authored by: Certified Private Equity Professional - 1st Year AssociateCertified Private Equity Pro

Bill Stern @ Axe Cap

IB

7y

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Seniority - Trade Credit vs Senior note?

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