I got one questions regarding the liquidation value of a company that has a first lien on total assets.
Let's not talk about the fair value of the assets. I need to know if the lender has priority also on the current liabilities.
First I thought that the value was (Total Assets - Current Liabilities) and the lender had priority only on the other lenders (Long Term Debt - Non-Current Liabilities).
Do you agree?
If not, does the lender have a priority also on the current Liabilities (employees, tax, etc)?