Butterworths Journal of International Banking and Financial Law

This article describes some recent developments in the approach to intercreditor agreements in transactions where there is an asset-based debt tranche in the debt stack. The article is based on the authors’ observations of the UK market and is not intended to be prescriptive.


Asset-based lending (ABL) is senior secured lending to finance the working capital lifecycle of a business. It differs from single-asset financing because the lenders are able to advance loans against the realisable value inherent in all asset classes. ABL can be a particularly supportive and flexible form of financing for companies undergoing periods of change, including acquisitions, turnarounds and re-financings. Although enforcement is rare, it does happen, and most asset-based lenders include a preliminary assessment of the likely enforcement route and outcome in their original credit decision.

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