Australia will introduce a framework of key intercreditor principles that will change the leveraged finance market forever, IFLR can reveal.
The framework, instigated by Westpac and developed in conjunction with ANZ, Commonwealth Bank of Australia and National Australia Bank, outlines the bank’s views on essential principles which should underpin Australian intercreditor agreements, principally in relation to subordinated and senior lenders’ enforcement and amendment rights.
Consultations on the framework, seen by IFLR, formally began last week, and the document has not yet been publicly released. Read more on the drafters' perspective at: http://www.iflr.com/Article/2893164/Australias-new-intercreditor-framework-The-drafters-speak.htmlWestpac’s head of leveraged and acquisition finance, Greg Clark, said the proposed framework was intended to improve liquidity in the market and had resulted from client calls for a more standard set of intercreditor documents....