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B-4001-2. MOTIONS TO USE CASH COLLATERAL AND TO OBTAIN CREDIT

(a)   Contents of Motion to Use Cash Collateral

In addition to the requirements of Fed.R.Bankr.P. 4001(b)(1)(B), motions to use cash collateral shall also comply with the requirements of Fed.R.Bankr.P. 4001(c)(1)(B) unless otherwise directed by the Court.

 (b)   Other Provisions to Be Disclosed

In addition to the provisions listed in Fed.R.Bankr.P. 4001(b)(1)(B) and (c)(1)(B), any motion to use cash collateral or motion to obtain credit (collectively “Financing Motions”) must also disclose as a “material provision” any provision of the type indicated below:

 (1)     Cross-Collateralization of Pre-Petition Debt

Provisions that grant cross-collateralization protection (other than replacement liens or other adequate protection) to the pre-petition secured creditor, i.e., clauses that secure pre-petition debt by post-petition assets in which the secured creditor does not assert a valid, perfected security interest by virtue of its pre-petition security agreement or applicable non-bankruptcy law, and provisions that deem pre-petition secured debt to be post-petition debt or that use post-petition loans from a pre-petition secured lender to pay all or part of that lender’s pre-petition claim, other than as provided in 11 U.S.C. §552(b);

 (2)     Professional Fee Provisions

Provisions that provide disparate treatment for the professionals retained by a creditors’ committee from that provided for the professionals retained by the Debtor with respect to a professional fee carve-out (payment from a secured creditor’s collateral);

 (3)     Priming of Existing Liens

Provisions that prime any secured lien without the consent of the holder of that lien;

 (4)     Loan Documentation Costs

Provisions that call for the payment of fees or costs by the Debtor other than reasonable attorney’s fees for loan documentation; and

 (5)     Plan Restrictions

 Provisions that limit, restrict, or otherwise affect the terms of a proposed plan of reorganization.

 (c)   Summary of Essential Terms

All Financing Motions must also set forth, unless good cause is shown, the total dollar amount requested, the Debtor’s proposed budget for the use of the funds, an estimate of the value of the collateral which secures the creditor’s asserted interest, the maximum borrowing available on an interim and final basis, the borrowing conditions, interest rate, fees, costs or other expenses to be borne by the Debtor, maturity, limitations on the use of the funds, events of default, and the protections afforded under 11 U.S.C. §§363 and 364.

 (d)   Interim Relief

When Financing Motions are filed as First Day Motions, the Court may grant interim relief pending review by the interested parties of the proposed arrangements. Such interim relief is intended to avoid immediate and irreparable harm to the estate pending a final hearing. Absent extraordinary circumstances, the Court may not enter interim orders that include any of the provisions identified in subparagraph (b) above, or any provision listed in Fed.R.Bankr.P. 4001(c)(1)(B)(ii)-(xi).