What happens in a senior secured default

Author: | Published: 23 Nov 2010

While senior secured note sales are on the rise, so are questions from bank counsel about the enforcement mechanics in the event of a default.

Given that senior lenders and bondholders are sharing the same level in the capital structure for the first time, control over security enforcement is one of the most difficult intercreditor issues to tackle.

Allen & Overy high-yield partner Kevin Muzilla said the enforcement mechanisms in senior secured note deals have been one of the biggest issues in the past year and a...