preferential claims

Preferential claims refer to specific rights that certain creditors hold to receive payment before others in the event of a company's liquidation or bankruptcy. These claims are prioritized based on legal rules, meaning that some debts, such as employee wages or tax obligations, are paid first. This ensures that those with critical interests or impact—like workers and the government—are more likely to recover their funds before others, such as suppliers or shareholders, who may receive nothing if the assets are insufficient. Such prioritization is intended to provide a level of financial protection to key stakeholders.