This client memo discusses the implications of a recent decision of the Bankruptcy Court for the Southern District of New York enforcing certain waivers of rights by second lien lenders in intercreditor agreements.  The court ruled that the plain language of the contract and creditor expectations required that the objecting second lien lender be denied standing to challenge the first lien lenders’ liens and priority and to oppose the debtors’ plan of reorganization.  Last week, the order confirming the debtors' plan of reorganization was temporarily stayed while the Second Circuit Court of Appeals reviews the motion for stay pending appeal.