Such an agreement also includes the provisions on buyback rights. This right allows a lender to purchase the receivables and pledge rights of other lenders. Such an option triggers bankruptcy proceedings as a result of certain events, such as filing a bankruptcy proceeding.B. defines the main parties to an inter-secretary agreement Another provision in the inter-creditor agreement could be deadlock. Subsequently, the junior lender is prevented from taking action against the borrower to enforce its debt. As a general rule, the restriction is to take action (require payment, take legal action, etc.) for a specified period of time. In addition, the status quo period extends until the execution process of the primary lender is opened. Sometimes the period extends to the full repayment of the priority debt. Another fundamental principle of intercreditator agreements is that the principal creditor is generally entitled to control the maintenance and transfer of common security, while the subordinate creditor is required to waive certain legal rights that would otherwise give the subordinate creditor the right to challenge the enforcement and enforceable execution procedure. As a general rule, a “status quo period” is imposed, which gives the priority creditor the exclusive right to apply and exercise remedial action through the debtor for a specified period of time.
The number of status quo periods allowed during the term of the loan is generally negotiated between priority creditors and younger creditors. Each status quo period is generally 90 to 180 days during the term of the loan, with additional time extensions, provided enforcement measures are carefully applied. In order to speed up and streamline the realization of security, the granting of exclusivity to the priority creditor may be subject to specific conditions, such as the obligation. B for the creditor to choose the services of a qualified independent appraiser to evaluate collateral or an experienced investment banker to conduct an auction procedure for the efficient sale of security. The same conditions may apply to the post-I business creditor if he resumes the process after the expiry of the status quo period for non-implemented common guarantees. As a general rule, the second holder of the pledge rights reserves the right to assert a right and to demand and expedite his credits in order to obtain his status (or at least not worse than) all unsecured applicants. The question of whether the second pawnbroker will have the right to approve Densatous in the bankruptcy proceedings is generally the subject of intense negotiations.