Commentary

65 The intercreditor deed

BANKING vol 4(1)
| Commentary

65 The intercreditor deed

| Commentary

6: INTERCREDITOR DEEDS

65 The intercreditor deed

There is a difference between a subordination deed and an intercreditor deed1 although on many occasions the terms are utilised interchangeably. It is fair to say that in a subordination deed or agreement the junior creditor acknowledges to the debtor and agrees with the debtor that his debt will be subordinated to that of the senior creditor who is identified but who is not necessarily a party to the subordination deed. As shown above it is thought that this arrangement would not infringe the pari passu mandatory distribution provisions of the Insolvency Act 1986

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