Define: Debtholder

UK Accounting Glossary

Definition: Debtholder



What is the dictionary definition of Debtholder?

Dictionary Definition


finance An owner of a financial obligation of another party.


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Full Definition of Debtholder


A debtholder is an investor who holds a debt instrument, most commonly a bond. With bonds, the terms bondholder and debtholder are used interchangeably. In the event of bankruptcy, ownership of the bond issuer transfers from stockholders to debtholders. If the bankruptcy results in complete liquidation, the debtholder is paid out of the proceeds first. The debt held by a debtholder can be senior debt or subordinated. A debtholder possessing senior debt is in the most secure position because senior debt obligations are paid ahead of subordinated ones. Default is not the only way for a debtholder to become a shareholder. With a convertible bond, the debtholder has a choice to convert the debt to shares of preferred or common stock.


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Debtholder. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 24, 2020 https://payrollheaven.com/define/debtholder/.
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Debtholder. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/debtholder/ (accessed: February 24, 2020).
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Debtholder. PayrollHeaven.com. Retrieved February 24, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/debtholder/

Definition Sources


Definitions for Debtholder are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th February 2020.