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They get none of the dividends, but suffer from being a creditor for a company awash with even more debt.
With electronic payments, the money may leave your account immediately, though it may not reach your creditor for a week or more.
[C4.] By filing for bankruptcy yesterday, Northwest Airlines expects to make the federal government an unsecured creditor for a $65 million contribution to its pension fund that was coming due today.
The success of a debt consolidator is often measured by the terms they can negotiate when they contact a creditor for a debtor.
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(Corinthian CEO Jack Massimino is also a creditor, for an unspecified amount; in a recent year he was paid $3 million, and managed to buy a magnificent vacation house that was recently on the market for $11.5 million).
Enron can now send the proposal to creditors for a vote.
These often involve cold-calling people in debt and offering to negotiate with creditors for a fee.
The outlook for the future could improve, though, now that Dubai World has won approval from creditors for a $24.9 billion debt overhaul plan.
The Agnelli family that controls Fiat turned to its creditors for a less scary deal.Besides Brussels and bankers, there is a third dimension to Fiat's future.
For Vinashin, matters reached critical mass in August when it found itself pleading with creditors for a stay of execution on loan repayments.
Speaking a week after Dubai World asked its creditors for a six-month delay, Mansouri insisted that the United Arab Emirates' economy would not be damaged by the episode.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com