Document background
An Intercreditor Agreement is essential in complex financing structures where multiple creditors hold different classes of debt against the same borrower or group of borrowers. This document, governed by Hong Kong law, establishes the relative priorities, rights, and obligations among various creditors, including senior lenders, mezzanine financiers, and other debt providers. It addresses crucial aspects such as payment hierarchies, security sharing, enforcement procedures, and voting rights. The agreement is particularly important in syndicated lending, project finance, and restructuring scenarios, where it provides clarity on creditor rankings and coordinates actions among different classes of debt holders. The document must comply with Hong Kong's legal framework, particularly in relation to security interests, corporate insolvency, and financial regulations.
