There are huge discrepancies between European and
US practices when drafting intercreditor provisions regarding
junior lenders’ rights. European loan contracts
should include explicit waivers that junior creditors have in a
US bankruptcy scenario, according to lawyers.
The LMA intercreditor agreement (Clause 12.4)
states that there is a general requirement that everyone must
act as instructed.
"However, there is not the explicit waiver of...