Which type of creditors has a claim secured by specific assets of a company?

Creditors with a fixed charge are those who have a legal claim to specific assets of a company as collateral for their lending. This means that in the event of a company's liquidation or bankruptcy, creditors with a fixed charge have the right to be repaid from the proceeds of the sale of those specific assets before any other creditors or shareholders receive payment.

This type of security gives these creditors priority in the claim over certain assets, often tangible ones like property or equipment. Because their claim is backed by specific assets, the risk associated with lending to the company is reduced, which can often result in lower interest rates for the borrower.

In contrast, unsecured creditors do not have such claims on specific assets, meaning they rely solely on the creditworthiness of the company. Ordinary and preference shareholders, on the other hand, have interests in the company that are subordinate to the claims of creditors; their investment is at risk before creditors are repaid, and they do not have rights to specific company assets. Therefore, the only group that holds claims specifically secured by assets of a company is creditors with a fixed charge.