Document background
The Subordinate Loan Agreement is used when a company seeks to obtain financing that ranks junior to its senior debt obligations under Danish law. This type of financing is particularly useful for companies looking to strengthen their capital structure without diluting equity or when traditional senior debt is not available or appropriate. The document establishes the terms of the subordinated loan, including the crucial provisions regarding subordination, payment restrictions, and creditor ranking. It ensures compliance with Danish regulatory requirements, particularly important if the borrower is a regulated entity or if the subordinated loan is intended to qualify as regulatory capital. The agreement includes comprehensive provisions covering interest, repayment terms, events of default, and the relationship with senior debt, while incorporating specific requirements under Danish law regarding contract formation, financial regulations, and insolvency provisions.
