The position of the junior creditor in intercreditor structures

Companies typically raise finance in the form of equity and debt, using different debt instruments to meet the needs of different debt providers. This article focuses on the junior creditor, the one who comes after the senior creditor in its repayment or recovery position. The authors examine various structures and tools used to determine the junior's position and address the impact of these structures. The conclusion highlights the diversity of strategic options available to juniors, where the degree of protection depends not only on the structure chosen, but also on its specific interpretation in the relevant documentation. These nuances are crucial both within and outside insolvency proceedings.