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Where do my debenture stock or capital notes rank in priority for distribution on receivership?

April 26, 2017Capital debenture distribution notes priority rank receivership stock

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Where do my debenture stock or capital notes rank in priority for distribution on receivership?

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The Trust Deed sets out the priority for distribution in a receivership. Class A and Class B debentures rank equally in a receivership. The debentures rank ahead of other secured and unsecured creditors and capital notes. Capital notes are unsecured and rank last in payment of the creditors of the company, behind other unsecured creditors.