LBI) under the Securities Investor Protection Act and chair of the Hughes Hubbard & Reed LLP Corporate Reorganization and Bankruptcy Group, initiated the third interim distribution to unsecured general creditors
with allowed claims today by wiring and sending checks totaling $1.
Even worse, the general creditors
of HotelCo can become obstacles to the restructuring by raising objections to any plan supported by Bank.
Although this overcollateralization will provide further protection to investors, the FDIC will be entitled to any unused excess for general creditors
Investors should know that, above FDIC limits, they become general creditors
of the issuing bank.
Andronikou says Pompey's recent struggles have left them owing pounds 32m to former owner Sacha Gaydamak, pounds 13-15m to owner Balram Chainrai, pounds 15m to the Inland Revenue and pounds 6-7m to other general creditors
It ensures that secured creditors are paid first, followed by general creditors
, then shareholders, thereby encouraging creditors to continue lending to viable firms.
However, should the employer become insolvent, the trust's assets would become subject to the claims of the employer's general creditors
Then the FDIC could go ahead and agree that it would protect all general creditors
of banks in bank failures.
Executives receive a supplemental benefit that is not subject to the general creditors
of the employer.
However, employers may place assets in a "rabbi trust" (subject to the claims of the employer-grantor's general creditors
in the event of the employer's bankruptcy), without resulting in income recognition to the employee until distribution.
This provision specifically applies to foreign trusts and arrangements (usually called offshore Rabbi trusts) that effectively shield assets intended to satisfy NQDC arrangements from the claims of general creditors
Placing assets in an offshore trust is treated as the transfer of property triggering immediate taxation (as vested) regardless of whether the assets are available to satisfy claims of general creditors