Preferred creditor – within the Insolvency Law, this term refers to the figure of creditor, who on the base of local regulations has the legal right to receive first the assets of the debtor, among all others to whom the debtor owes money. Sometimes such a right rises on the base of firstly registered mortgage or other legal burden on these assets. Depending of the local jurisdictions, for example preferred creditor could be the State, or the Municipality, or bank, etc. The term is similar to “preferred beneficiaries” – namely these shareholders in concrete corporate body, who are entitled to receive first among the others, dividends.

See also: https://en.wikipedia.org/wiki/Preferential_creditor