211E. Super priority for rescue financing

Question 1

211E. Super priority for rescue financing

Answer 1

General overview
[211E.01] Most companies that undertake a “section 210” restructuring of its debts with its creditors often seek rescue financing from banks, financial institutions or “white knights”. In order to protect these corporate rescuers from losing any loans, financing or credit that they had extended to the company in the event the “section 210” is aborted and the company wound up, s 211E provides some protection to them in the manner provided therein.