allco and abc may help centro, page-11

captain,

Where did you hear that? Lenders NEVER, EVER in a million years rank with shareholders in a wind-up. Pursuant to the Corporations Act, shareholders have only a residual interest in the equity of the company. Whereas creditors (secured or otherwise) have a direct claim on the assets of the company.

More practically, can you imagine that any bank would lend money to any company if they didn't rate above shareholders' claims in a wind-up? I can't.

If you can find an authority for your proposition, I'd love to hear it.