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.
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