Document background
The Intercreditor Agreement is essential in complex financing arrangements where multiple creditors hold different classes of debt against the same borrower or group of borrowers. This document is particularly crucial in Austrian-governed transactions where specific local law considerations must be addressed while maintaining international banking standards. The agreement typically comes into play in leveraged finance transactions, restructurings, or any situation involving multiple tiers of debt. It details crucial aspects such as payment hierarchies, security sharing, enforcement rights, and insolvency scenarios. The document must comply with Austrian security and insolvency laws while providing clarity on creditor rankings and rights. It's commonly used alongside facility agreements and security documents in significant corporate financing transactions.
