At the time of winding up of the company accepts claim of debentures prior to preference shares what does - Accountancy - Issue and Redemption of Debentures

Question

At the time of winding up of the company accepts claim of
debentures prior to preference shares what does this mean?

Amit Chatterjee · Accepted Answer

It simply means that when a company winds-up, it first settles
the account of debentureholders (i e company repays the amount to
its debentureholders), then it pays to its preference shareholders
and if any amount is left after the payment to the debentureholders
and the preference shareholders, then it is used to repay the
equity shareholders

At the time of winding up of the company accepts claim of debentures prior to preference shares. what does this mean?