Lender-on-lender violence
An informal label for transactions that advantage some creditors at others’ expense, often by changing priority or collateral access. They can involve borrowers or sponsors and need not be confined to one original loan.
Lender-on-lender violence in round numbers
Hypothetical: holders of US$60m of a US$100m relevant voting-principal base support a proposed priority transaction, representing 60%; the other holders represent 40%. This is a principal-weighted voting assumption, not a lender headcount. A majority alone does not authorize the transaction or determine creditor recoveries.
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| Group | Principal | Share of relevant voting base |
|---|---|---|
| Supporting holders | US$60m | 60% |
| Other holders | US$40m | 40% |
| Total relevant voting base | US$100m | 100% |
Terms Related to Lender-on-lender violence
Uptier exchange · Liability management exercise (LME) · Sacred rights · Absolute priority rule · All of the glossary