Protecting Cash Collateral in Chapter 11: Adequate Protection, Intercreditor Agreements, Carve-Outs, Valuation
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss challenges related to providing adequate protection for the use of cash collateral and debtor-in-possession (DIP) financing that are most often contentiously negotiated among the debtor, its secured creditors, and DIP lenders, and that bankruptcy judges intensely scrutinize.
- Introduction: statutory requirements (Sections 105, 361, 362, 363, 364, and 507; Rule 4001)
- 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
The panel will discuss these and other key issues:
- What should creditors do if adequate protection is not negotiated pre-filing?
- What are the key terms for any cash collateral order?
- What are some unusual types of adequate protection that have been approved?
- Can legal fees be recharacterized as payments on debt?
- What is a fictitious going concern value?
- Can assets in non-U.S. jurisdictions constitute adequate protection?
Alvarez & Marsal Holdings
Mr. Whittman is a Managing Director with Alvarez & Marsal's North American Commercial Restructuring practice in... | Read More
Mr. Whittman is a Managing Director with Alvarez & Marsal's North American Commercial Restructuring practice in Chicago. He is the Co-Head of the Midwest region and brings 25 years of experience advising companies requiring performance improvement or financial restructuring across a wide range of industries, including automotive, communications, distribution, manufacturing, media, mining and retail. Mr. Whittman has led complex engagements for companies, secured lenders and creditors, and has served in both interim management and advisory roles.Close
Timothy (Tim) Hoffmann
King & Spalding
Mr. Hoffmann's practice focuses primarily on bankruptcy and insolvency-related matters. He has represented debtors,... | Read More
Mr. Hoffmann's practice focuses primarily on bankruptcy and insolvency-related matters. He has represented debtors, lenders, strategic investors, and various other parties in financially distressed situations, including both in-court and out-of-court restructurings.Close
King & Spalding
Mr. Montoni is a partner in our Corporate, Finance and Investments practice, specializing in debt restructuring and... | Read More
Mr. Montoni is a partner in our Corporate, Finance and Investments practice, specializing in debt restructuring and workouts. He advises senior management and deal team members in all aspects of financing transactions, including structuring, documenting, negotiating and restructuring asset-based loans, asset-backed loans, cash flow loans, and structured financing products across a variety of business sectors, including manufacturing, media, retail, and service industries.Close
Sarah Beth Wilson
Ms. Wilson's areas of focus include bankruptcy and reorganization, business and litigation.| Read More
Ms. Wilson's areas of focus include bankruptcy and reorganization, business and litigation.Close