Momentive Disrupts Intercreditor Agreements And Reorgs

Law360 (February 8, 2019, 4:39 PM EST) -- Second lien financing is often an attractive source of capital for companies because it typically has a lower interest rate than unsecured debt. The second lien lender, meanwhile, is assured the residual value of the collateral shared with the first lien lender if the borrower defaults on the loan. To set out the rights and obligations of senior secured creditors vis-à-vis junior ones — including priority of payment — an intercreditor agreement is normally executed in conjunction with the underlying loan agreements.

One of the critical issues that must be addressed in an intercreditor agreement is whether it will provide for lien...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!