by Kelly G. Black | Oct 27, 2016 | Cash Collateral, Using Cash Collateral to Maintain Collateral |
Another argument for approving operating expenses more readily than other uses arises under state law. Under the state law or the contract, a creditor’s interest in the cash collateral may extend only to the net rents or net proceeds or, alternatively, the...
by Kelly G. Black | Oct 25, 2016 | Cash Collateral, Using Cash Collateral to Maintain Collateral |
One of the reasons that operating expenses can be approved more readily than other uses is that the spending itself preserves the value of the collateral. This is a bankruptcy-specific question: whether the proposed use of cash collateral “provide[s] adequate...
by Kelly G. Black | Oct 25, 2016 | Cash Collateral, Using Cash Collateral to Maintain Collateral |
When a debtor seeks permission to use cash collateral, “operating expenses” can be approved more readily than other uses. In this context, the term “operating expenses” is tied to the collateral. I use it as a shortcut for the more precise...
by Kelly G. Black | Oct 23, 2016 | Cash Collateral, Using Cash Collateral to Maintain Collateral |
One of the less controversial uses of cash collateral is cover reasonable and necessary operating expenses relating to the underlying collateral. This type of spending maintains the value of income producing collateral and of the cash collateral stream itself. For...
by Kelly G. Black | Oct 20, 2016 | Cash Collateral |
One of the earliest issues a debtor faces in bankruptcy is securing approval to use money. A chapter 11 bankruptcy filing prohibits creditors from acting against the debtor, but it also requires the debtor to secure approval to use certain funds which are subject to...
