Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Finance documents definition

What does Finance documents mean? In banking and finance practice, finance documents means the suite of contracts that together set out the terms of a financing between the borrower and the lender(s). It is not a statutory term; it is a descriptive label almost always defined in the facility (loan) agreement, particularly in LMA-based syndicated loans, leveraged finance and project finance. The definition typically captures: the facility agreement; security documents forming the security package (for example, debentures, fixed and floating charges and mortgages; in Scotland, standard securities and assignations in security; in Northern Ireland and Ireland, charges and mortgages); guarantees; intercreditor agreements...

Creditor majorities and blocking rights in restructurings: standstills, syndicated loans, bonds, intercreditor arrangements, voting thresholds and tactics, exit consents, consent payments, disenfranchisement, and statutory alternatives

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

When assessing options at the outset, the underlying Finance documents must be examined to identify the creditor majorities capable of blocking steps required to preserve an effective standstill arrangement, and to deliver a successful restructuring process (see Practice Notes: Key elements of a Standstill agreement).

Initial steps

Companies increasingly have multiple discrete categories of creditor, often with competing agendas and priorities. The finance documents and any intercreditor agreements (see Practice Note: Intercreditor agreements for R&I lawyers) should be reviewed to establish, for each tranche of debt:

the voting thresholds each creditor constituency must meet to waive existing covenant breaches/events of default (frequent features of a standstill) or to amend the finance documents
the Enforcement mechanics and procedures, together with the responsibilities of any Security trustee/collateral agent/facility agent
whether any buy-out rights exist

A valuation (see Practice Note: Where the value breaks and negotiating strength) will highlight creditors most likely to assert or exercise blocking rights; those situated near the value break will seek to maximise such rights to obtain a stronger outcome.

Majorities in syndicated loans

Where loans are provided by a syndicate of lenders, a security trustee/collateral agent/facility agent is ordinarily appointed (see Practice Note: The security agent)...

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Web page updated on 21/05/2026

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