66 Secured senior debt and junior debt

66 Secured senior debt and junior debt

These comments will now turn to consider the position where the senior debt and the junior debt are both secured, generally on the same assets.

It is generally considered advisable for priority provisions in the intercreditor deed to apply not only to payment but also (if the junior and senior debt are secured) to enforcement of the security and the distribution of realisation proceeds, and to the cover the situation where the security is not sufficient to discharge the senior debt.

In the absence of agreement, the priority of two ‘securities’ over the same asset