Sertissimens transaction: Subordination of first and second lean lenders

The Sertissimens transaction involves a company, such as Sertiss, approaching a majority of its lenders to amend the first and second lean credit agreements, providing the company with super priority debt capacity. The first and second lean lenders then exchange their existing debt for this super priority debt, effectively subordinating the minority first lean lenders to the super priority lenders. This transaction poses significant harm to the first lean lenders, as they move from a first in line to second or third in line for repayment in case of bankruptcy.