Alamvõlausaldajad

Alamvõlausaldajad is an Estonian term that translates to "subordinated creditors" or "junior creditors" in English. It refers to creditors whose claims rank lower in priority than those of senior creditors in the event of a company's liquidation or bankruptcy. This means that subordinated creditors are only repaid after all senior creditors have been fully satisfied.

The status of subordinated debt is often established through contractual agreements between the debtor and the creditor. These agreements typically outline the terms under which the creditor agrees to subordinate their claim. This subordination can be either to all other creditors or to specific classes of creditors. Subordinated debt is often issued by companies to strengthen their capital structure without diluting the ownership of existing shareholders.

From an investor's perspective, subordinated debt typically carries a higher interest rate than senior debt to compensate for the increased risk. If a company faces financial distress, there is a greater chance that subordinated creditors may not recover their investment. Despite the risk, subordinated debt can be an attractive investment for those seeking higher yields and who have a higher risk tolerance. It plays a role in corporate finance by providing companies with flexible financing options.