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Protect yourself legally as a creditor with the following options: 

Safeguard your interests as a company by using the following clauses: 

Subordination agreement

Our subordination agreement template allows you to draft a professional debt subordination agreement to be signed between a creditor and a debtor company to postpone the repayment of a debt. With this sample, it’s possible to suspend payments on debt until the improvement of the business’s financial situation. 

A business uses our subordination agreement example: 

Key aspects of a subordination agreement 

Eight tips on a subordination agreement 

To protect your legal and financial interests as a company, we advise you to choose from the following options of our subordination agreement template: 

Our subordination agreement example offers protection and benefits to the creditor as well, for example: 

Create a subordination agreement with AdminTech 

With AdminTech’s online document builder and the subordination agreement sample, all you need to do is fill in the required fields with the relevant information to adjust the document to your specific situation. 

A professional debt subordination agreement covers the following information:  

FAQ on a subordination agreement 

When should you draft a subordination agreement?  

Without having the obligation, a subordination agreement template is commonly used when a Swiss debtor company is in one of the following situations: 

To avoid filing for bankruptcy in such cases, the parties may choose to subordinate all or part of the outstanding debt.  

What are the effects of subordination on the creditor? 

In either example mentioned above, a subordination agreement would necessarily impose the following restrictions on the creditor: 

However, our template allows the following options for the creditor: 

What are the consequences of subordination on the debtor? 

A subordination of debt agreement often stipulates the following restrictions on the debtor: 

How can a subordination clause be terminated? 

A subordination agreement of any form comes to an end in the following circumstances: 

In our template, the parties may likewise specify a minimum duration, even if one of the release conditions is met. 

Who may draft a subordination agreement? 

A subordination contract is more commonly used by a shareholder or a company within the group to postpone bankruptcy and ensure the restructuring of their financial situation. Such an act is typically accompanied by the granting of additional funds in the form of a subordinated loan. 

Third-party creditors may likewise subordinate a debt, in particular where their interest in continuing cooperation and keeping the company financially stable is more important than the pursuit of short-term reimbursement. 

What is the difference between subordination and waiver of claim? 

Whereas a waiver is irrevocable and definitive, a subordination is a temporary suspension on payment of the debt, subject to a release condition. 

What are the alternatives to subordination? 

Depending on the circumstances, a shareholder may opt for the following alternatives to subordinating a debt: 

For a third-party creditor, however, it is possible to waive the debt in return for: 

How can a company ensure a successful subordination operation? 

To ensure a successful subordination of a debt, we recommend the following steps: 

Use this amendment: 

contract

10€/document

TRY BEFORE BUY

This amendment is governed by Swiss law and complies with commercial and financial regulations 

Create document

Protect yourself legally as a creditor with the following options: 

Safeguard your interests as a debtor by using the following clauses: 

Use this contract: 

contract

10€/document

TRY BEFORE BUY

This contract is governed by Swiss law and complies with corporate regulations

Create document

Protect yourself legally with the following options: 

Use this contract: 

contract

10€/document

TRY BEFORE BUY

This contract is governed by Swiss law and complies with corporate regulations

Create document

Protect yourself legally with the following options: 

Use this document: 

contract

10€/document

TRY BEFORE BUY

This document is governed by Swiss law and complies with commercial and financial law

Create document

Protect yourself legally with the following options: 

Use this document: 

contract

10€/document

TRY BEFORE BUY

This template is governed by Swiss law and complies with commercial and financial law

Create document

Use the following options to optimise the warranty conditions: