Trust Me - A Security Trustee’s Duties To Subordinated

A recent High Court judgment has highlighted the importance for mezzanine creditors of including express and robust contractual protections when negotiating intercreditor agreements and provides a helpful summary of a trustee's duties to mezzanine lenders when enforcing security.

The recent judgment of Saltri III Ltd v MD Mezzanine S.A. Sicar & Ors¹ relates to the 2010 non-consensual restructuring of the Stabilus Group. The judgment provides a helpful overview of the way fiduciary relationships operate in a secured financing and the effect of provisions allowing duties that would otherwise arise to be departed from by contract.

The Court considered:

• The "purpose" of an intercreditor agreement.