Drafting Standstills in Intercreditor Agreements: Balancing Rights and Remedies of Junior and Senior Lienholders
Thursday, August 26 1:00 PM EST to 2:30 PM EST
One of the key points of negotiation in an intercreditor agreement is the scope of the "standstill" or "remedies block." The provisions prohibit a lender with a junior security interest from exercising its rights and remedies against the collateral. In contrast, the lender with a senior security interest has the exclusive right to determine the exercise of rights and remedies against the collateral. In the context of lien subordination, the standstill period generally focuses on restricting the junior lienholder's actions against the collateral.