Document background
A Subordinate Loan Agreement is utilized when parties wish to establish a lending arrangement where the lender's claims are contractually subordinated to senior debt obligations. This document is particularly relevant in Irish corporate financing scenarios, including acquisition financing, corporate restructuring, or project finance. The agreement must comply with Irish legal requirements, including the Companies Act 2014 and relevant financial services regulations. The document typically contains detailed provisions regarding the ranking of debt, payment restrictions, events of default, and intercreditor relationships. It's especially important in situations where companies have multiple layers of debt or when implementing complex financing structures that require clear hierarchical arrangements between different classes of creditors.
