������Ƶ

An Intercreditor Agreement sets clear rules between multiple lenders who provide loans to the same borrower. In Belgium, these agreements are especially common in syndicated lending and project finance, where several banks or financial institutions share the risks of a large loan.

The agreement spells out crucial details like payment priorities, security rights, and what happens if the borrower defaults. Under Belgian financial law, it helps prevent conflicts between senior lenders (who get paid first) and junior lenders (who accept lower priority), making complex financing deals more secure and manageable for everyone involved.

Use an Intercreditor Agreement when multiple lenders plan to finance the same Belgian company or project, especially in situations involving both bank loans and bond financing. This becomes essential for large infrastructure projects, real estate developments, or corporate refinancing where different lenders bring varying levels of risk tolerance.

The timing is critical - put the agreement in place before closing any multi-lender financing deal. Belgian law requires clear documentation of creditor rankings and rights, particularly when mixing secured and unsecured debt. Having this agreement ready helps avoid costly disputes and ensures smooth coordination during both regular payments and potential restructuring scenarios.

• Senior-Junior Agreements: Used in traditional bank financing, these set payment priorities between senior bank lenders and junior bondholders
• First-Second Lien Agreements: Common in secured lending, managing rights between lenders with different security rankings under Belgian collateral law
• Mezzanine Intercreditor Agreements: Structure relationships between senior debt, mezzanine financing, and equity-linked instruments
• Project Finance Agreements: Coordinate multiple lenders in large infrastructure or real estate projects, often involving public-private partnerships
• Syndicated Loan Agreements: Manage relationships between multiple banks in syndicated facilities, particularly common in corporate financing

• Senior Lenders: Usually major Belgian banks or financial institutions who hold first-ranking claims and initiate the Intercreditor Agreement
• Junior Lenders: Often investment funds or mezzanine financiers who accept subordinated positions in the payment hierarchy
• Legal Counsel: Belgian corporate lawyers who draft and negotiate the agreement's terms, ensuring compliance with local financial regulations
• Borrowing Companies: The enterprises receiving multiple loans, typically large corporations or project developers
• Security Agents: Financial institutions managing the collective security interests of all lenders under Belgian law

• Loan Details: Gather all credit agreements, including amounts, interest rates, and maturity dates for each lender
• Security Package: List all collateral assets and their rankings under Belgian security law
• Payment Terms: Document the agreed payment waterfall and distribution mechanics between creditors
• Enforcement Rights: Define each lender's rights during default scenarios and restructuring events
• Signatory Authority: Confirm proper authorization levels for each participating financial institution
• Automated Generation: Use our platform to create a legally-sound agreement that includes all mandatory Belgian law requirements

• Parties and Definitions: Clear identification of all lenders, borrowers, and security agents under Belgian law
• Ranking Provisions: Detailed hierarchy of debt and security interests, including subordination terms
• Payment Waterfall: Specific order of payments and distribution mechanisms among creditors
• Enforcement Provisions: Rules for collective enforcement actions and standstill periods
• Security Sharing: Terms for sharing and managing collective security interests
• Governing Law: Express choice of Belgian law and jurisdiction clauses
• Amendment Protocol: Procedures for modifying agreement terms with proper consent levels

An Intercreditor Agreement differs significantly from a Debt Settlement Agreement in both scope and purpose. While both deal with debt arrangements, they serve distinct functions in Belgian financial law.

• Purpose and Timing: Intercreditor Agreements proactively manage relationships between multiple lenders before or during lending, while Debt Settlement Agreements reactively resolve existing debt problems between a single creditor and debtor
• Party Structure: Intercreditor Agreements involve multiple creditors coordinating their rights, whereas Debt Settlement Agreements typically involve just one creditor and one debtor
• Legal Scope: Intercreditor Agreements establish ongoing governance rules and payment hierarchies, while Debt Settlement Agreements focus on resolving specific outstanding debts
• Enforcement Mechanisms: Intercreditor Agreements contain complex collective enforcement provisions, whereas Debt Settlement Agreements usually feature simpler, direct collection terms