Document background
The Deed of Subordination is a fundamental document in Irish corporate and finance law, used when there is a need to establish a clear hierarchy between different creditors' claims against a debtor. This document becomes particularly relevant in scenarios involving multiple layers of debt, such as senior and junior financing arrangements, mezzanine financing, or group company loans. The deed explicitly sets out how different debts rank in priority, when payments can be made on subordinated debt, and what happens in default scenarios. It's commonly used in corporate restructurings, acquisition financing, and project finance transactions where multiple creditors are involved. The document must comply with Irish legal requirements for deeds and should be properly executed to ensure enforceability. Key considerations include registration requirements under the Companies Act 2014 and compliance with Irish property and security laws where relevant.
