Creditors like predictability and controlling risk. Intercreditor agreements, loan participation arrangements and loan syndications all are strategies to help achieve that. However, even a well-drafted agreement does not always avoid disputes among creditors. Balch has decades of experience representing lenders, not only in drafting agreements to govern the relationship of co-creditors, but also in the enforcement of those agreements when disputes arise.
Similarly, our firm frequently represents clients when disputes arise among creditors—particularly when the dispute is over the priority of liens or security interests and the creditors are not parties to an intercreditor agreement or similar arrangement.
Balch works with traditional and non-traditional lenders in resolving disputes as to the priority of mortgages and security interests. Similarly, we often represent creditors in disputes under intercreditor agreements, participation agreements, and loan syndications. We also represent contractors, sub-contractors, and other lien claimants when disputes arise as to the priority of multiple liens.
Intercreditor Agreements: From advising clients when entering intercreditor agreements, to enforcing those agreements, Balch represents banks and other creditors to ensure their rights are protected.
Participation Agreements & Loan Syndications: Balch routinely represents banks (both as lead/agent bank and as participant) in the enforcement of loan participation, syndication, and similar agreements. This representation can involve counseling clients on the parties’ respective rights as well as litigation related to the enforcement of those rights.
Lien Priority Disputes: Despite the well-known rule of “first in time, first in right,” there are many factors that determine priority of liens other than who won the race to the courthouse. We represent lienholders when disagreements arise over who has senior priority.