The unitranche credit facility is a recent and growing feature of the credit markets, particularly in the middle-markets sector. Unitranches combine what might otherwise be separate credit facilities into a single secured-credit facility that includes both the “senior” and the “junior” debt. These loan structures are favored by many borrowers and have been touted for their speed and efficiency in both closing and administration. However, there are a number of concerns regarding the treatment of unitranche structures, particularly in a bankruptcy proceeding.
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