Companies pursuing super senior debt

Companies have been increasingly pursuing super senior or super first lean debt as a liquidity enhancement measure. This involves creating new tranches of debt that prioritize repayment ahead of existing first lean debt. For example, SIRTA Simmons in the US recently created a new first lean, first out debt tranche and a second out tranche, exchanging some of their existing debt. However, this has led to controversy, with Apollo suing the company, claiming it violates agreements and common lender agreements.