Capital Structure Waterfall and Priority of Claims

What this video covers

• Where debtor-in-possession (DIP) financing and administrative expenses sit relative to pre-petition secured creditors, and when a priming lien is permitted
• Why a vendor with goods on the loading dock is senior unsecured, not secured, unless a purchase-money interest was perfected
• How an under-secured loan splits into a secured claim capped at collateral value plus a general unsecured deficiency claim
• Where mezzanine debt belongs in the waterfall, and why treating it as equity or senior bank debt both produce wrong answers
• Why preferred stock and common stock are residual claims that are wiped out before junior debt is impaired
• What the Absolute Priority Rule (APR) requires in a cramdown, and why pro rata sharing within a class prevents side deals
• How the new value exception can allow old equity to retain or receive reorganized equity