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Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Bankruptcy

Date & Time
  • event Date

    Monday, April 28, 2025

  • schedule Time

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

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$147.00

This CLE webinar will guide new bankruptcy lawyers through the must know issues related to debtor-in-possession (DIP) financing and the use of cash collateral in Chapter 11 cases.

Faculty

Smith Steven
Shareholder
Herrick, Feinstein LLP

Mr. Smith focuses his practice on complex corporate restructuring and creditors' rights, including in court Chapter 11 cases and out-of-court workouts. He represents official and ad-hoc creditor committees, secured lenders, administrative agents, and other parties-in-interest in restructuring matters. He is experienced in analysis of true sale, non-consolidation and bankruptcy remoteness principles.

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Selbst Stephen
Shareholder
Herrick, Feinstein LLP

Mr. Selbst has more than 30 years of experience representing debtors, creditors, official committees, distressed investors and asset purchasers in bankruptcies and out-of-court restructurings. He is a frequent lecturer on bankruptcy and restructuring topics and has published articles and book chapters on bankruptcy-related topics.  He has been frequently quoted in newspaper articles on insolvency related topics and has appeared on CNBC.

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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.

Outline

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

Benefits

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?