Residual assets

Residual assets

Assets that remain after sufficient assets are dedicated to meet all senior debtholders' claims in full.

Residual Assets

A person's or company's assets after all secured obligations have been paid. That is, the residual assets are those left over after all senior creditors have had their claims satisfied. For example, in a bankruptcy or other liquidation, the residual assets are those used to pay unsecured creditors or common shareholders, if any. See also: Precedence.