Document background
The Postponement And Subordination Agreement is a crucial document in structured finance and debt arrangements under English and Welsh law. It becomes necessary when multiple creditors are involved in financing a business or project, and there's a need to establish a clear hierarchy of payment rights. This agreement provides certainty to senior lenders by ensuring their priority status, while junior creditors accept a subordinated position. It typically includes detailed provisions about payment restrictions, enforcement rights, and turnover obligations. The document is particularly relevant in leveraged finance transactions, corporate restructurings, and project finance deals.
