When this Chapter was published in the preceding edition to this book in 2012, the main focus of the discussion on intercreditor agreements was the A/B intercreditor as such senior/junior lender arrangement was, and for the most part continues to be, the most relevant document setting out the relationship, rights and obligations of senior and junior lenders where the senior loan is placed into a CMBS transaction. Given the lack of new CMBS transactions at that time and that any such new CMBS deals were being structured on a simpler basis (i.e. single loans, single borrowers and backed by stronger performing real estate assets) if compared with the more vibrant and active period before the GFC, the issues discovered from working out stressed CMBS transactions, the losses that many B lenders faced in the market and the simpler structure of CMBS transactions overall, legitimately resulted in a fairly obvious conclusion that A/B intercreditors were perhaps not as necessary as they had once been before.

Originally published in Sweet & Maxwell - November, 2016.