Final answer:
Secured creditors have the right to claim specific pledged assets in the event of a bankrupt company, while unsecured creditors only share in the remaining assets after secured creditors are paid.
Step-by-step explanation:
One key distinction between the remedies available to a secured creditor and an unsecured creditor of a bankrupt company is related to their respective rights to the assets of the company. Secured creditors have a particular asset pledged as collateral for their loan, which gives them the right to seize and sell said collateral to recoup their money if the company is unable to meet its payment obligations. Conversely, unsecured creditors do not have the right to lay claim to specific assets; instead, they can only share pro-rata in the distribution of the remaining assets of the company after the secured creditors have been paid. Bond issuer failure to make payments can trigger bankruptcy proceedings where secured creditors have the first claim, followed by unsecured creditors.