An example of when a junior debt holder might get full recovery while a more senior debt holder would not get full recovery would be: During an out of court restructuring when a lower priority loan is due the Company could choose to pay the more junior lenders to remove them from the equation and not have enough cash left for a senior lender When a junior debt holder strikes an intercreditor agreement with the Company to get paid off first in an incourt restructuring process When a junior debt holder files a perfection of security interest after the senior lender has filed a perfection of security interest 0 When a junior debt instrument is at the operating company level, but a senior debt holder is at the holding company level