Which one of these is most apt to be repaid first if a firm encounters financial distress and goes out of business?

Question

Quizplus · Accepted Answer

A blanket mortgage is a type of secured debt in which the lender has a claim on all the assets of the debtor rather than just a specific asset or property. This means that in the event of financial distress and bankruptcy, the lender with a blanket mortgage is more likely to be repaid first, as they have a claim on all the assets of the firm. Junior debt, unsecured debt, subordinated debentures and subordinated debt are all types of debt that are lower in priority and would be repaid after the lender with a blanket mortgage.

Which One of These Is Most Apt to Be Repaid