An Inter Creditor Agreement (Or Intercreditor Deed) Is A Contract Between Two More Creditors

As a general rule, in each act signed by two or more parties, each party should be aware of the critical elements of the agreement. It is therefore necessary for a junior lender to set up a clear ground and identify fundamental problems before the start of the operation, as follows: these restrictions are more often perceived in highly structured or cancelled transactions, but certain elements, such as.B. restrictions on margin increases and fees, are increasingly required for more “regular” transactions. If you do not make such an agreement, each lender will act in its own way. Such a process could prove to be non-economic and, at the same time, become legal chaos. The inclusion of a right of redemption for the mezzanine lender to acquire priority debt at face value is increasingly common in interconnection documents. . . .


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