Document background
The Intercreditor Agreement is essential in complex financing transactions where multiple creditors have claims against the same borrower or group of borrowers. This document becomes particularly important in leveraged finance transactions, restructurings, or any situation involving multiple layers of debt. The agreement, governed by Danish law, establishes a clear hierarchy among creditors, regulates payment flows, and sets out enforcement procedures. It typically includes provisions for security sharing, payment subordination, and standstill arrangements. The document must comply with Danish financial regulations, bankruptcy laws, and security legislation, making it crucial for all parties to understand their rights and obligations under Danish jurisdiction. It serves as a fundamental tool for managing creditor relationships and reducing potential conflicts in complex financing structures.
