Definition of debtor
1
: one guilty of neglect or violation of duty
2
: one who owes a debt
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Examples of debtor in a Sentence
The debtor agrees to pay the debt over a three-year period.
Recent Examples of debtor from the Web
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The creditors supporting the plan are also providing a $300 million debtor-in-possession loan to fund operations while the company is in bankruptcy.
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According to court papers, a debtor-in-possession, or DIP loan to fund operations in bankruptcy will include $75 million revolver and a $60 million term loan with Citibank as an agent to other lenders.
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Enough Cash The offer was put aside, with negotiators already close on a plan that didn’t need any debtor-in-possession loans.
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The company also had to negotiate debtor-in-possession loans to finance operations through the Chapter 11.
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According to court papers, a debtor-in-possession, or DIP loan to fund operations in bankruptcy will include $75 million revolver and a $60 million term loan with Citibank N.A. as an agent to other lenders.
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According to court papers, a debtor-in-possession, or DIP loan to fund operations in bankruptcy will include $75 million revolver and a $60 million term loan with Citibank N.A. as an agent to other lenders.
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There was a time in America when debtors were jailed for not paying their debts.
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The lenders, including JPMorgan Chase & Co. and Goldman Sachs Group Inc., jockeyed to provide debtor-in-possession loans, which are first in line to get repaid.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'debtor.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of debtor
13th century
Financial Definition of DEBTOR
debtor
What It Is
A debtor is a person or entity legally required to provide a payment, service or other benefit to another person or entity (the obligee). Debtors are often also called borrowers or obligors in contracts.
How It Works
Companies that issue bonds are perhaps the most well-known debtors. They must provide their bondholders with set interest and principal payments on specified dates and in some cases must be willing to convert that debt into equity at specified ratios or repay the debt early if certain events occur.
However, a debtor also might be required to perform particular tasks or even refrain from performing certain actions. When a debtor fails to meet its obligations, the debtor is sometimes considered in default.
Why It Matters
Debtors are subject to contractual obligations. As such, if they do not fulfill their obligations, the creditors usually have the right to seek recourse in court. A significant amount of reputational damage can also occur when an entity, especially a public company, fails to meet its obligations. In some cases, even the speculation that a debtor might not fulfill its obligations can cause its stock price to go down and make it very difficult to obtain financing or other help later.
Source: Investing Answers
DEBTOR Defined for English Language Learners
Definition of debtor for English Language Learners
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: a person, organization, government, etc., that owes money
DEBTOR Defined for Kids
Law Dictionary
Learn More about debtor
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See words that rhyme with debtor Spanish Central: Translation of debtor Nglish: Translation of debtor for Spanish speakers Britannica English: Translation of debtor for Arabic speakers Britannica.com: Encyclopedia article about debtor
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