Intercreditor Agreements in Second Lien Financing Transactions
Negotiating and Drafting Agreements to Minimize Lienholder Disputes
Recording of a 90-minute CLE webinar with Q&A
This seminar will analyze current trends in negotiations and disputes between first and second lienholders, provide best practices for drafting key provisions of intercreditor agreements, and discuss the most recent draft of the ABA Model Intercreditor Agreement.
- Trends in second lien financing and enforceability of intercreditor agreements
- Critical provisions in intercreditor agreements
- Lien v. payment subordination
- Absolute priority of security interests in collateral
- Composition of first lien obligations
- Cap on amount of first lien obligations
- Relative enforcement rights of security interests in collateral
- Analysis of ABA Model Intercreditor Agreement
- Contests to perfection, priority and enforcement
- Control of enforcement process
- Modification of intercreditor agreement
- Release of liens
- Purchase of collateral by second lien lender
- Rights in event of borrower’s bankruptcy
The panel will review these and other key questions:
- What is the difference between lien subordination and payment subordination?
- Which intercreditor terms are critical in loan workout situations?
- What does the ABA Model Intercreditor Agreement offer to resolve disputes between lienholders?
Mark B. Joachim
Mr. Joachim is a member of the firm’s Bankruptcy and Financial Restructuring and Corporate Groups. His practice... | Read More
Mr. Joachim is a member of the firm’s Bankruptcy and Financial Restructuring and Corporate Groups. His practice encompasses both new loan transactions and the restructuring of such arrangements. He represents lenders and other investors with respect to financially distressed companies, on both “new money” transactions and in restructuring situations. He regularly advises clients on new loan origination.Close
Michael D. Schiffer
He advises publicly and privately held REITs and other corporations in connection with major transactions, corporate... | Read More
He advises publicly and privately held REITs and other corporations in connection with major transactions, corporate governance issues, securities transactions and other financings. He represented private companies in M&A transactions and venture capital investments, and lenders and borrowers in subordinated loan transactions, second lien loans and related equity investments.Close
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