Bankruptcy: Account Payable

naivekid's picture
Rank: Baboon | 170

In case a company files for bankruptcy, is account payable considered to be a secure/unsecured/subordinated debt; or what claim do account payable companies have on the underlying assets of a company that owes them money.

Thanks

Comments (6)

May 19, 2013

general unsecured creditors. get in line with everyone else without a secured interest.

May 19, 2013

GUCs is correct

May 19, 2013

thanks guys

May 24, 2013

not always GUC. 503(b)(9) and critical vendor claims can offer alternative treatment under a plan.

May 24, 2013

heebbanker is right. Critical vendors can be paid in full when other unsecured creditors get nothing. It all depends on the case. You can find that information from the bankruptcy disclosure statement.

May 24, 2013
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