Final answer:
In Chapter 11 bankruptcy proceedings, secured debt holders have the first claim priority, followed by administrative claim holders, unsecured debt holders, and finally, equity holders.
Step-by-step explanation:
In a Chapter 11 bankruptcy proceeding, the stakeholder who has the first claim priority is the secured debt holders. These stakeholders have claims that are backed by collateral, giving them a right to be paid before other creditors when the assets are distributed. Following the secured creditors, the next in line are administrative claim holders, who are owed expenses for preserving the estate, such as attorney and accountant fees incurred during the bankruptcy process.
After administrative claim holders, unsecured debt holders have priority. These are creditors who have no collateral securing their claims. Lastly, equity holders, the owners of the company, have the lowest priority and typically receive distributions only if all other claims have been satisfied.