The bankrupt company's liquidated assets will first be used to pay the unsubordinated debt. Any cash in excess of the unsubordinated debt will then be allocated to the subordinated debt. Holders of subordinated debt will be fully repaid if there is enough cash on hand for repayment. It's als...
like otherdebts and liabilities, the subordinated debt will also be listed on the liabilities side of the balance sheet. In the liabilities, the current liabilities come first, then comes senior or unsubordinated debt under the long-term loans. After this, we show the junior debt on the balanc...