Intercreditor Agreement - Movable Assets
Contractual Arrangements between Multiple Creditors Regarding Ranking & Enforcement Rights.
An intercreditor agreement governs the mutual legal relationship between multiple creditors who have claims on the same debtor or the same securities.
The agreement determines priority, enforcement rights, and cooperation mechanisms between parties to prevent conflicts in the event of execution or insolvency.
Scope of application
This documentation is used in situations where multiple financiers or creditors hold a position regarding the same assets or the same debtor.
Typical situations include parallel financings, senior/junior credit structures, multiple pledgees on the same securities, and restructurings combining existing and new financiers.
The arrangement ensures contractual alignment of rights and obligations among the involved creditors.
Legal components
The agreement may include, among others:
- Establishment of ranking among creditors.
- Agreements on payment order.
- Restrictions on independent enforcement.
- Standstill provisions.
- Proceeds distribution mechanisms.
- Admission and exit arrangements.
- Information and consultation obligations.
The provisions are legally aligned with the underlying security structure and financing documentation.
Preliminary legal analysis
Prior to drafting, the following is assessed:
- Existing contractual ranking relationships.
- The nature and size of the financing positions.
- Each creditor’s security rights.
- Risk allocation in case of insolvency.
- The desired protection position of the parties.
Based on this assessment, a legally balanced and enforceable arrangement is formulated.
Integration within complex structures
An intercreditor agreement often forms part of:
- Multiple financing arrangements.
- Layered security structures.
- International credit transactions.
- Refinancings.
The agreement functions as a coordination mechanism between different credit positions.
Submit structure
Do you want to legally establish the relationship between multiple financiers?
Each request is legally analyzed beforehand to ensure the structure is implemented correctly.