Intercreditor Agreement

An agreement between / among the main creditors of a project Borrower governing the relationships among those lenders in respect of the borrower’s obligations. Typically such an agreement will contain provisions regarding matters such as:

• Common terms
• Order of drawdown
• Cashflow waterfall
• Limitation on ability of creditors to vary their rights
• Voting rights
• Notification of defaults
• Order of applying the proceeds of debt recovery