Kim Wynn, Christopher Combest and Jason Curry Look at Role of Intercreditor Agreements in Article for Journal of Bankruptcy Law
Quarles & Brady partners Kim Wynn, Christopher Combest and Jason Curry wrote an article for The Journal of Bankruptcy Law about the impact a detailed intercreditor agreement can have during bankruptcy proceedings.
Wynn is a Milwaukee-based member of the Business Law Practice Group, while Combest and Curry are both part of the Bankruptcy, Restructuring & Creditor’s Rights Practice Group, in Chicago and Phoenix, respectively.
In the article, they followed a lender through its bankruptcy proceeding to illustrate the role an intercreditor agreement should play. An excerpt:
An intercreditor agreement should address the automatic stay, cash collateral, DIP financing, Section 363 sales, and the plan confirmation process to preserve the parties’ expectations in a proceeding and to reduce the likelihood of prolonged intercreditor disputes in a common debtor’s bankruptcy. While addressing these complicated bankruptcy issues may make the negotiation process more tedious, failure to adequately address them can expose the junior and senior lenders to risk and be much more expensive and time consuming in the pressurized Chapter 11 context.