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...