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Bailey McCann, Opalesque New York:

Winning the financing market depends on where you sit in the capital stack if things go south. If a company finds itself unable to pay all of its creditors, leveraged lenders generally want to make sure they're high enough on the list to be one of the handful that gets repaid in part or in full. Historically, that pecking order has been defined by the assets securing the loan and the terms of financing. So-called first-lien lenders, for example, expect to be one of the creditors paid off no matter what. But that may be changing. Aggressive lenders in a small handful of deals over the past few years have been able to renegotiate lending terms and catapult themselves to the head of the line. The latest - involving restaurant supplier TriMark - ended up in court this weekend.

One group of lenders is suing another group of lenders arguing that a $427.5 million rescue financing package unfairly supplanted previously senior lenders. The plaintiffs include Audax, BlueMountain Capital Management, Golub Capital Partners, Intermediate Capital Group, New Mountain Finance Corp., Shenkman Capital Management, York CLO Managed Holdings, and Z Capital Credit Partners. Defendants include a laundry list of firms including Ares Management, BlackRock, Blackstone, Centerbridge Partners, and Oaktree.

According to the complaint, the defendants worked with TriMark on additional financing to bail out the company as it took on new losses from the pande......................

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