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Can a senior debt allow principal and interest payments on subordinated debt subject to satisfaction of senior loan covenants?

John Pruitt's Profile

Answers

Anonymous
(V.P. Business Services) |
EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

My ..02

As always, it depends on the what the debt instrument/document says. But YES, with one condition ... ALL (extra emphasis) senior debt holders must sign off or agree. ONE hold out will torpedo the arrangement. The senior debt holders are basically just WAIVING their preferential right.

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