Definition of super-senior debt
Senior lenders are those who are in the best position if a company gets into difficulties with its debt as the senior lenders have first call on the unsecured assets (before other lenders). However, in a debt restructuring, sometimes new lenders come in to fund the continuing operation of the company on a super-senior basis. This means that the senior debt becomes subordinated to the new super-senior debt.
See our full Online Financial Glossary