Commentary

67 Variation of creditor rights

BANKING vol 4(1)
| Commentary

67 Variation of creditor rights

| Commentary

67 Variation of creditor rights

Frequently a subordinated debt agreement or an inter-creditor deed grants powers to classes of creditors to vary the rights of all creditors within a class by a majority vote. It is not uncommon for a creditor to have more than one interest in the business of a debtor; for example a venture capital company may hold a class of senior debt but also be a shareholder. In such situations the Court may imply terms into the debt instrument and the inter-creditor deed that protect the minority from the exercise of the majority’s powers so as

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial