Document background
A Deed of Subordination is essential in complex financing arrangements where multiple creditors have claims against the same debtor. Under English and Welsh law, this document formally establishes the ranking of debts and prevents junior creditors from taking enforcement action or receiving payments ahead of senior creditors. The deed is commonly used in corporate finance, acquisition financing, and restructuring scenarios, particularly where there are multiple layers of debt or where existing creditors need to accommodate new financing. It includes detailed provisions on payment restrictions, enforcement limitations, and the treatment of received funds.
