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  • videocam On-Demand
  • signal_cellular_alt Beginner
  • card_travel Bankruptcy
  • schedule 60 minutes

Chapter 11 Fundamentals: Debtor-In-Possession Financing and Use of Cash Collateral

$147.00

This course is $0 with these passes:

CLE
ALL
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Description

In any case where the debtor has secured debt, the debtor needs approval from the secured lender(s) or court authority to use the lender's cash collateral, i.e., cash that secures the lender's loan. In many cases the debtor also needs to borrow new money, a DIP loan, either from a new lender or through additional advances from an existing lender.

The use of cash collateral and the obtaining of DIP loans go hand in hand. Cash collateral orders and DIP loans have many embedded legal issues that affect all creditors and the debtor throughout the case. In recent years, lenders have also used cash collateral and DIP loans to take control of the case by setting deadlines for various events, such as marketing and selling the debtor's business or confirming a plan of reorganization.

Listen as this premier panel clarifies these complex and ubiquitous issues around cash collateral and DIP lending, helps less-experienced lawyers recognize them, and suggests ways to respond.

Credit Information

  • This 60-minute webinar is eligible in most states for 1.0 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, June 10, 2025

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Introduction: statutory requirements
  2. Cash collateral
    1. What is cash collateral?
    2. What is adequate protection?
    3. Court approval, hearing, notice
    4. Creditor considerations for consenting to use of cash collateral
    5. Impact of intercreditor agreements
    6. Budget issues
    7. Methods of providing adequate protection
    8. Critical provisions in cash collateral orders
  3. DIP financing
    1. Rollover of pre-petition secured debt
    2. Cross-collateralization
    3. Priming liens
    4. Liens or super-priority claims on avoidance actions
    5. Releases and waivers of challenges to liens and other future borrowings
    6. Section 506(c) waivers
    7. Junior DIP financing
    8. "Carve-out" for professional fees

The panel will review these and other key issues:

  • What is adequate protection?
  • What terms in DIP or cash collateral orders may have the most long-term effect on creditor recovery?
  • How does Bankruptcy Code Section 552 operate?
  • What are red flags in the debtor's 13-week budget?
  • Can debtors push back against overreach by secured lenders?