A creditor is a natural person or legal entity that has the right to assert a claim against some other natural person or legal entity (debtor). Holders of bonds (i.e. debt instruments) are creditors of the company that has issued the bond. In the event of the companys bankruptcy, the creditors ranking is of great significance in the way any residual assets will be distributed. Privileged creditors (e.g. employees) have a priority claim in this regard.