A subordinated loan, also known as junior debt, is an essential tool for completing the final finance picture in the event of e.g. takeovers with a ‘vendor loan’, mezzanine finance, restructuring if requested by the special supervision department or tax-related reorganisations. Subordination may be effected at various levels, and it is important to bear this range in mind if we have to negotiate with, for or against banks. Extensive knowledge of insolvency law is essential in this respect.
Legal assistance concerning a subordinated loan
At Ploum, our specialists can advise and assist you in respect of a subordinated loan. And if you have any questions concerning subordinated loans, vendor loans or junior debts, please do not hesitate to contact one of the members of our Banking Law and Finance Team.