medium · Corporate Credit Analysis cap-structure

In a bankruptcy waterfall, where do 'General Unsecured Claims' at the operating company rank relative to 'Senior Unsecured Notes' at the holding company?

1. They are senior to the HoldCo notes because they have a direct claim on the OpCo assets.
2. It depends on whether the HoldCo notes are governed by New York or English law.
3. They rank pari passu as they are both 'unsecured' debt instruments.
4. They are junior because 'Notes' are typically a more formal financial instrument than trade claims.

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