Subordination in US Operating Company Capital Structures: A Primer

ICLG published an expert analysis chapter co-authored by partners Daniel J. Bursky, J. Christian Nahr and Mark Hayek, and special counsel Eliza Riffe Hollander in International Comparative Legal Guide - Lending & Secured Finance 2023. In the chapter, they discuss the three forms of subordination most frequently seen in US operating company structures - lien, payment and structural subordination - and how each can impact capital allocation in a downside scenario.