Common Contracts
1 similar null contracts
Preserving the Bankers’ Bargain: Intercreditor Agreements and BankruptcyMarch 2nd, 2012
Over the last decade, corporate borrowers accessing the capital markets have issued an ever increasing amount of multi-tranched secured debt with tiers of lien priority on the same collateral. In order for this stacking of senior and junior secured debt to work efficiently in default and other troubled situations, fairly complex intercreditor agreements delineating the respective rights of each loan tranche were created, and were intended to be separate contracts between lenders that were enforceable in bankruptcy proceeding, foreclosures and other court driven processes. Initially there was little uniformity across intercreditor agreements, but as the market developed and courts started to interpret lenders’ rights under the agreements they became more consistent.
