Definition of subordinated debt in US English:
subordinated debt
nounsəˌbɔrdnˌeɪdɪd ˈdɛtsəˌbôrdnˌādid ˈdet
Finance A debt owed to an unsecured creditor that can only be paid, in the event of a liquidation, after the claims of secured creditors have been met.
Example sentencesExamples
- The company also won a 30 million euro waiver on some of its subordinated debt.
- Certain transaction types are also a good fit for subordinated debt, including management buy-outs and acquisitions.
- There could be a couple of different debt tiers, maybe using some kind of subordinated debt.
- The tier-II capitalisation route is not attractive because securities are treated as subordinated debts as long as the maturity period does not exceed five years.
- It is noteworthy that neither the Insolvency Act 1986 nor the Insolvency Rules contain any provision to deal specifically with the treatment of subordinated debts.