What is an Inter-Creditor Agreement (ICA)?

An Inter-Creditor Agreement (ICA) is a legal arrangement between multiple creditors of a distressed company, which outlines how they will cooperate and prioritize their claims during the debt resolution process. The ICA helps in streamlining the decision-making process among creditors, particularly in cases of insolvency or financial distress, by ensuring they are aligned in their approach to restructuring the company’s debts.