Comparing Intercreditor Agreements

Many of these conditions relating to the sale of security are lacking to U.S. inter-creditors with both hands, because the requirement of the single code of commerce for the sale of security in an economically reasonable manner and, in the case of a 363 sale procedure, by a court-authorized sale in Chapter 11, as discussed in more detail later , provide reasonable protection. Given the increase in the number of funding on both sides of the Atlantic and the complexity of this type of funding, intercreditator agreements for multi-jurisdictional financing operations will remain important and interesting. While there is no common approach or common approach to documenting these inter-credit terms, both sides of the Atlantic largely understand the various provisions and the underlying justifications. As a result, most transactions are made on a mixed basis and combine many of the European or American elements mentioned above into an American or European inter-believer. However, as in the case of second European pledges, it is unlikely that a uniform approach will be put in place until the new forms of the transatlantic intercredicator agreement are put to the test in cross-border restructuring. To ensure that subsequent holders of pawn rights cannot intervene in the sale of common guarantees, both second-rate and European U.S. interbanks contain release provisions under which junior lenders agree that their right to pledge on all common guarantees (and, in Europe, the underlying borrowing and guarantee obligations) is automatically released when the first guarantee and guarantee obligations are considered creditors under a loan agreement and a pawnbroking and loan agreement. , more importantly, in the context of the first creditors` application of the deposit. The security officer receives instructions from creditors who hold 662.3% (or 50.1% if this is the threshold applicable in the second bond agreement) the sum of (i) amounts under the senior credit agreement and (ii) any actual exposure under guarantee agreements.

The second European interbanks generally have a much wider provision for stopping implementation than the second US deposit rights, mainly because there is no pan-European equivalent of Chapter 11 stay. The scope of the restricted enforcement measures generally prohibits any acceleration of the second pawn debt, any execution of the payment or action forfeiture, and any admission or participation in the initiation of insolvency proceedings by the second pawnbroker or by the second creditors on a pawn basis of judicial enforcement of rights and remedies under the second privileges or applicable law. whether as a secured creditor or unsecured. The turnaround time is traditionally (i) 90 days (in most cases) after a delay in payment under the senior credit agreement, (ii) a 120-day period (in most cases) after the announcement of a late payment under the senior credit agreement (although this has been less prevalent in the European market since the introduction of Cov-lite financing). and (iii) a 150-day period (in most cases) from notification of another case of delay under the main credit agreement and, in some cases, 120 days if the security guard takes enforcement action.

Comments are closed.