Arrangements with third-party creditors: Subordination of security interests

7 minute read
12 January 2023

Speaker:

Now we're going to review one course of action to address third-party creditors you encounter in structuring a new senior lender financing for a prospective borrower. Specifically, we'll look at the formal and informal subordination of the security interest held by another third party.

In this video we discuss:

  • Subordination formats
  • Addressing security and/or debt
  • Secured shareholder loans
  • Common limitations

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How we can help

If you have any specific questions about the points discussed or it's specific application, please reach out to our Banking & Finance Group or Richard Dusome.

About the series

Lending rarely involves one bank providing 100 per cent of the financing. In many situations, there are numerous third-party creditors involved in a given transition. With so many stakeholders in play, bankers might have no idea how to legally protect their interest. This series will delve into the "why" and "how" of preparing priority arrangements, all in a language bankers can understand.


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