Document background
The Intercreditor Deed is essential in complex financing transactions where multiple lenders provide different types of debt to a single borrower or group of borrowers. This document becomes particularly important in the Indian financial market where large infrastructure and corporate financing often involve multiple banks, financial institutions, and other creditors. The Intercreditor Deed establishes the hierarchy of payments, security sharing arrangements, enforcement mechanisms, and voting rights among creditors, while ensuring compliance with Indian banking regulations, the SARFAESI Act, and other relevant legislation. It is commonly used in project finance, syndicated lending, and restructuring scenarios, providing clarity on creditors' rights and avoiding potential conflicts between different classes of lenders.
