Are Your Waivers Worth The Paper They Are Printed On?

Law360, New York (July 6, 2012, 6:28 PM EDT) -- After several years of unusually few corporate defaults, there has recently been an uptick in corporations failing to satisfy their bond and loan obligations. In a number of cases, the debts in question are part of multiple-lien or multitranche financing structures that incorporate complex subordination packages.

The agreements at issue often go beyond merely subordinating rights to payments. Instead, such agreements often also entail waivers by the junior creditors of various bankruptcy protections that they would otherwise possess, including the right to vote on plans of...
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