What is the so-called Deep State? Here's what you need to know about an obscure term making the rounds in the White House President Trump's Allies Keep Talking About the 'Deep State.'
The investors who take the least risk are paid first. For example, secured creditors take less risk because the credit that they extend is usually backed by collateral, such as a mortgage or other assets of the company. They know they will get paid first if the company declares bankruptcy. Secured Creditors-often a bank, is paid first. 2  Unsecured Creditors-such as banks, suppliers, and bondholders, have the next claim. 3  Stockholders-owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.
Bankruptcy isn't necessarily the end for a corporation. If a company files Chapter 7, it liquidates its assets and closes its doors. In Chapter 11, however, the company reorganizes, paying off some debt, wiping out the rest, and then rising stronger from the ashes.Chapter 11 rarely works out well for the stockholders, who are at the bottom of the list to get paid off.f a company files Chapter 7, it liquidates its assets and closes its doors. In Chapter 11, however, the company reorganizes, paying off some debt, wiping out the rest, and then rising stronger from the ashes. Chapter 11 rarely works out well for the stockholders, who are at the bottom of the list to get paid off.