Senior/mezzanine creditor intercreditor issues—enforcement [Archived]
Produced in partnership with Hogan Lovells
Practice notesSenior/mezzanine creditor intercreditor issues—enforcement [Archived]
Produced in partnership with Hogan Lovells
Practice notesARCHIVED: This Practice Note was archived and is not maintained.
Enforcement is an important area regulated by the intercreditor agreement. This note discusses:
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the situations in which mezzanine lenders typically can and cannot take enforcement action
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issues around any mezzanine option to purchase provision, and
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the situations in which each class of creditor typically has control over enforcement strategy
The note also highlights commonly negotiated issues in each area.
For an explanation of the different provisions found in intercreditor agreements, see Practice Note: Introductory guide to Intercreditor Agreements and for an introduction to senior/ mezzanine intercreditor agreements in particular, see Practice Note: Senior/mezzanine creditor intercreditor issues—introduction [Archived].
For a straightforward intercreditor agreement with accompanying drafting notes, see Precedent: Intercreditor deed—single company borrower—single secured senior lender—single secured junior lender—single unsecured subordinated lender.
More detailed information on payment controls and document amendments can be found in Practice Note: Senior/mezzanine creditor intercreditor issues—document amendments and payment controls [Archived].
Practice Note: Intercreditor rights comparison table—junior debt instruments provides a table setting out commonly negotiated positions for
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