Paste a credit agreement provision. See which liability management exercise protections it contains — J.Crew blocker, Serta blocker, Chewy blocker and more — and exactly where each one leaks.
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J.Crew, Envision and Pluralsight blockers — transfers, designation of an unrestricted subsidiary and exclusive licences.
Serta blocker subordination consent and non-pro-rata or open market purchase language.
Chewy blocker conditions — and whether a guarantor falls away when it stops being wholly owned.
Non-guarantor debt, guarantees and intercompany claims that could create a second claim.
The lender vote needed to amend each protection, and Incora-style vote changes.
Every quote is matched word-for-word against your text. Anything that can't be verified is dropped.
LME blockers are drafting protections in a credit agreement that restrict specific liability management exercise techniques. A J.Crew blocker restricts moving material IP to an unrestricted subsidiary; a Serta blocker restricts subordinating lenders without their consent; a Chewy blocker restricts releasing a guarantor just because it stops being wholly owned.
Having a blocker is not the same as being protected. Scope, definitions, carve-outs such as an 'offered to all lenders' exception, and whether the blocker is a sacred right decide what it actually prevents.
New to LMEs? Our guide to liability management exercises in 2026 covers market data, blocker trends and the Serta, Mitel and Incora decisions. To test every protection across the credit agreement, amendments and intercreditor together, use AI LME analysis.
| Protection | Designed to restrict | Common gap |
|---|---|---|
| J.Crew blocker | Moving material IP to an unrestricted subsidiary | Covers transfers but not designation or exclusive licences; Borrower decides what is material |
| Serta blocker | Subordinating liens or payment priority without consent | “Offered to all lenders” exception; liens covered but not payment priority |
| Non-pro-rata / open market purchase | Exchanges offered only to some lenders | Broad open market purchase definition |
| Chewy blocker | Releasing a guarantor that becomes non-wholly owned | No requirement of a bona fide sale to a third party |
| Sacred rights | Changing key protections by majority vote | Blocker amendable by Required Lenders |
Blockers change through amendments — compare each amendment with the signed agreement to see what was added or narrowed, and use the contradiction finder when definitions and covenants pull in different directions. Lenders can add LME protections to underwriting and the annual credit review.
Illustrative blocker language — and what the checker tests in each.
No Loan Party shall transfer, or grant an exclusive license of, any Material Intellectual Property to any Unrestricted Subsidiary, and no Subsidiary that owns Material Intellectual Property may be designated as an Unrestricted Subsidiary.
Tests transfers, exclusive licences and designation — and who decides what counts as material.
No amendment shall subordinate the Obligations in right of payment, or the Liens securing the Obligations, to any other Indebtedness without the consent of each Lender directly and adversely affected thereby.
Tests lien and payment subordination, the consent threshold and any “offered to all lenders” carve-out.
A Guarantor shall not be released solely because it ceases to be a wholly-owned Subsidiary unless it ceases to be a Subsidiary as a result of a sale to a non-Affiliate for bona fide business purposes.
Tests whether a release needs a genuine third-party sale.
No amendment to Section 7.02(y) or this Section 10.01(viii) shall be effective without the written consent of each Lender directly and adversely affected thereby.
Tests whether a blocker can be removed by majority vote.
Add the negative covenant, guarantor release or amendments section — plus the definitions it relies on.
Each protection is marked present, partial, not protected or unclear, with the gaps that weaken it.
Every quote is verified against your text; missing definitions are flagged, not guessed.
A drafting protection in a credit agreement that restricts a specific liability management exercise technique — for example, a J.Crew blocker restricts moving material IP to an unrestricted subsidiary.
A J.Crew blocker targets drop-downs of material assets to unrestricted subsidiaries; a Serta blocker targets non-consensual subordination (uptiers); a Chewy blocker targets releasing a guarantor that becomes non-wholly owned.
Blockers depend on defined terms such as 'Material Intellectual Property' or 'Unrestricted Subsidiary'. Without them, the answer may change — the checker lists which terms are missing.
Up to 10,000 characters of provision text plus 6,000 characters of definitions, or one TXT, MD, PDF or DOCX file up to 5 MB (PDFs up to 10 pages).
No. It shows what the language you provide restricts and leaves open. It is a first-pass review, not legal advice.
Files are converted to text on our servers and not stored. Text is processed by our AI model provider for this check only and is not used for training.
Upload the credit agreement, every amendment, the guarantee and collateral agreement and the intercreditor. Get a cited LME protection map with every gap flagged.