2 ms·
From what I can lookup in the US the order it is: 1. Secure creditors (like liens on specific assets) 2. Administrative expensive post bankruptcy 3. Priority
by pkaye 11mo ago
From what I can lookup in the US the order it is:
1. Secure creditors (like liens on specific assets)
2. Administrative expensive post bankruptcy
3. Priority unsecured claims like employee wages
4. General unsecured creditors like suppliers and customers
5. Shareholders
I think customers who paid by credit card or have travel insurance might be able to make a faster claim with those as the legal process is slow especially since it involves multiple countries where they do business.
- SoftTalker 11mo agoSome credit cards that cater to travelers might actually have that benefit. Would be worth checking if you travel a lot and like to stay at quirky boutique hotels that might turn out to be insolvent.
- nradov 11mo agoI don't know the details of this particular case but generally most guests who reserved their stay using a credit card wouldn't have actually paid anything yet. There is no insurance claim if they're not out any money. Most likely the appointed bankruptcy administrators will charge the evicted guests for the nights that they actually stayed in the hotels and cancel the rest of their reservations. The guests are legally obligated to pay for services already rendered, even if the customer service was terrible.