Intercreditor agreement

How it is used

Use when several creditor groups finance one borrower; the document coordinates their positions.

Example sentences

1. The intercreditor agreement specified how sale proceeds would be divided.

   The document allocates recoveries between creditor groups.

2. Junior lenders accepted an enforcement standstill in the intercreditor agreement.

   Coordination can restrict when individual creditors take action.

Common collocations

• intercreditor agreement terms
• negotiate an intercreditor agreement

Related terms

• syndicated loanA large loan provided by a group of banks together under one agreement, so that no single bank takes all the risk.
• covenantA promise in a loan or bond agreement that the borrower will or will not do certain things, such as keeping its debt below a set level.

More terms: Corporate Finance

• cash flow
• capital
• working capital
• leverage
• dividend
• bond
• valuation
• M&A
• IPO
• due diligence
• shareholder
• raise capital