Document background
The Intercreditor Deed is essential in complex financing transactions where multiple lenders provide different types of debt to a borrower. It becomes particularly relevant in Malaysian financing structures where various layers of debt (such as senior facilities, mezzanine loans, and subordinated debt) exist simultaneously. The document ensures orderly coordination between creditors by establishing clear priorities, payment hierarchies, and enforcement procedures. The deed must comply with Malaysian banking and securities laws while providing adequate protection for all creditor classes. It typically includes provisions for sharing of security, regulation of enforcement actions, standstill arrangements, and payment waterfalls. This document is crucial for project financings, leveraged acquisitions, and corporate restructurings in Malaysia where multiple creditors are involved.
