Book Publication Date:
May 2014 Description: An intercreditor agreement is an agreement between two groups of lenders with separate debt obligations secured by common collateral of a borrower. An intercreditor agreement delineates the rights and obligations of each group of lenders in relation to the other lenders regarding the collateral if the borrower
defaults under its debt obligations or files for bankruptcy. A payment subordination clause states that the subordinate lenders agree to prioritize payments of the senior lenders. Type: Contract Clauses
PLI Item #: 133484
Practice Area: Corporate & Securities
Keywords: "intercreditor agreement"; "payment subordination"; "first lien obligations"; "second lien obligations"; "first lien claimholders"; "second lien claimholders"