Europe intercreditors must allow for US jr. waivers

Author: | Published: 27 Jul 2011

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...