Intercreditor Agreements in Bankruptcy

November 20, 2012

 

An "intercreditor agreement" can be defined as an agreement that sets forth the relative rights, priorities and remedies among one or more lenders with respect to one or more common debtors. The enforceability of an intercreditor agreement in the context of a bankruptcy case is addressed in Section 510(a) of the Bankruptcy Code, which provides that “[a] subordination agreement is enforceable in a case under this title to the same extent that such agreement is enforceable under applicable nonbankruptcy law.” 11 U.S.C. § 510(a). In view of this seemingly clear, unambiguous language, it would seem that courts considering the enforceability of subordination agreements in the context of a bankruptcy case would only need to review and apply relevant nonbankruptcy law. However, whether an intercreditor agreement is a subordination agreement included within the protection of 11 U.S.C. § 510(a) is a valid question. In fact, earlier case law addressing the enforceability of a subordination agreement, or at least some of its provisions, in the context of a bankruptcy case concluded that the scope of Section 510(a) of the Bankruptcy Code is far narrower than meets the eye.

To read more about this topic, please see full article below

Download PDF


Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Featured Attorneys

send article

TESTIMONIALS

  • “Melinda Sellers has provided a high level of service to our company. She provides thorough research, high level of organization to any matter, and persuasive legal writing. She has a bright legal career ahead of her.”

    -Chambers 2012

  • "I've been impressed with the firm, very much so. They've been exceptionally successful in terms of the results they've obtained. They've achieved pretty much a universal success in terms of their litigation abilities. They've been exemplary."

    -Chambers 2013

  • “I work with a lot of lawyers and he is as good as any of them. He is very smart and good at negotiating. He is incredibly responsive. He did a flawless job and got us a great outcome.”

    -Chambers 2012

  • "Peter's professionalism, honesty and integrity are beyond reproach."

    -Dave Hamilla, President, IntaMation Engineering Services, Inc.

  • “Semi-retired, still working but not in full force. He makes the firm.”

    -Chambers 2012