Finance Deals & Syndicated Lending · glossary
The weak spot of lending to a holding company. The value sits in its subsidiaries, whose own creditors are paid first if they fail. Guarantees from the subsidiaries fix this, which is why Sunrise has them. Chapter 2 · Chapter 13
Explained in Chapter 2, Who's Who in a Syndicated Loan, of Finance Deals & Syndicated Lending.
The main page for this term is Structural subordination, in Security & Collateral.
Only what is left would pass up to Atlas as the shareholder. So a lender to the holding company stands behind every creditor of every subsidiary. This is called structural subordination.Read Chapter 2, Who's Who in a Syndicated Loan →
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