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Security, Intercreditor Arrangements & Enforcement

Protections Built to Actually Work When a Default Occurs

Averites advises lenders, borrowers, investors and sponsors on the security, priority and enforcement arrangements supporting financing transactions.

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OUR APPROACH

How We Advise on Security, Intercreditor Arrangements and Enforcement

  1. What Actually Determines Whether Security Protects a Lender

    The value of a financing protection depends not simply on whether security documentation exists, but on what assets are covered, whether the security has been validly created and perfected, where the secured creditor ranks against competing claims and whether the relevant remedies can be exercised efficiently if the borrower defaults.

  2. Assets We Advise On Securing

    We advise on security over shares and equity interests, bank accounts, receivables, contractual rights, intellectual property, movable and immovable property and other assets appropriate to the transaction and relevant jurisdiction.

  3. Guarantees and Credit Support

    We also advise on guarantees and other forms of credit support, including questions of corporate authority, corporate benefit, financial assistance and limitations that may affect the validity or enforcement of guarantees provided within corporate groups.

  4. Priority and Intercreditor Arrangements

    Where several layers of financing exist, we advise on priority and intercreditor arrangements among senior lenders, subordinated lenders, private credit providers, shareholders and other capital providers. These arrangements may govern payment priority, enforcement rights, standstill periods, turnover obligations, release of collateral and the treatment of proceeds following an enforcement or sale.

  5. Assessing Enforcement Position Before Acting

    When a financing becomes distressed, we assist creditors in evaluating their enforcement position before action is taken. This includes reviewing defaults, acceleration rights, collateral, guarantees, competing claims, insolvency risks and the location and recoverability of relevant assets.

  6. Workouts, Enforcement and Coordinated Strategy

    We represent creditors in negotiated workouts and enforcement matters and coordinate litigation, insolvency and asset-recovery strategies where voluntary repayment or restructuring is no longer realistic.

  7. Cross-Border Enforcement

    For cross-border financings, enforcement may require coordinated action in several jurisdictions. We work with local counsel and our Dispute Resolution practice to develop a strategy that reflects where assets are located, which remedies are available and how enforcement in one jurisdiction may affect proceedings elsewhere.

  8. Protections That Hold Up When They’re Actually Needed

    Our objective throughout the financing relationship is to ensure that negotiated creditor protections remain legally effective and commercially meaningful if they ultimately need to be used.

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Precision across borders. Book a Meeting

New York c/o Chornous Law PLLC
30 Wall Street, 8 Floor
New York, NY 10005 Phone: +1 650 382 7764
London 124 City Road
London, England
EC1V 2NX Phone: +44 7405 138109
Kyiv 11 Panasa Myrnoho Street
Office 1/1
Kyiv, 01011 Phone: +380 63 148 27 37

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FAQ

Frequently Asked Questions

  • No. The value of a financing protection depends not simply on whether security documentation exists, but on what assets are covered, whether the security has been validly created and perfected, where the secured creditor ranks against competing claims and whether the relevant remedies can be exercised efficiently if the borrower defaults.

    • We advise on security over shares and equity interests, bank accounts, receivables, contractual rights, intellectual property, movable and immovable property and other assets appropriate to the transaction and relevant jurisdiction.

      • Yes. We advise on guarantees and other forms of credit support, including questions of corporate authority, corporate benefit, financial assistance and limitations that may affect the validity or enforcement of guarantees provided within corporate groups.

        • Where several layers of financing exist, we advise on priority and intercreditor arrangements among senior lenders, subordinated lenders, private credit providers, shareholders and other capital providers, governing payment priority, enforcement rights, standstill periods, turnover obligations, release of collateral and the treatment of proceeds following an enforcement or sale.

          • We assist creditors in evaluating their enforcement position before action is taken, including reviewing defaults, acceleration rights, collateral, guarantees, competing claims, insolvency risks and the location and recoverability of relevant assets.

            • We represent creditors in negotiated workouts and enforcement matters and coordinate litigation, insolvency and asset-recovery strategies where voluntary repayment or restructuring is no longer realistic.

              • Enforcement may require coordinated action in several jurisdictions, each with its own rules on security, available remedies and insolvency. We work with local counsel and our Dispute Resolution practice to develop a strategy that reflects where assets are located, which remedies are available and how enforcement in one jurisdiction may affect proceedings elsewhere.