Financial Services Quarterly
Australia to introduce intercreditor framework
The International Financial Law Review1 has reported that a framework of key intercreditor principles has been developed by Westpac in conjunction with ANZ, CBA and NAB.
The framework is intended to improve liquidity in the market, with changes including:
-
senior lenders will be able to make amendments to pre-agreed terms without subordinated lender consent; and
-
in certain circumstances, subordinated lenders will be entitled to enforce after a standstill.
Once there is sufficient support for the principles, the framework will be put to the Asia Pacific Loan Market Association (APLMA) Australian documentation committee – the aim being to create a full intercreditor document under the umbrella of the APLMA.
Click here for more information.
1 Lucy McNulty, International Financial Law Review, October 2011
Enquiries and information
For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.
Disclaimer
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
