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Postpetition Lending Under Section 364: Issues Regarding The Gap Period And Financing For Prepackaged Plans, David G. Epstein Jan 1992

Postpetition Lending Under Section 364: Issues Regarding The Gap Period And Financing For Prepackaged Plans, David G. Epstein

Law Faculty Publications

If the priorities provided by section 364(c) are insufficient to entice potential lenders to provide sufficient :financing to a Chapter 11 debtor, the debtor may, with the court's approval, obtain credit by granting the lender a lien on property of the debtor that is senior to existing liens on such property (a "priming lien"). The granting of such a priming lien, however, is subject to several statutory conditions. First, as with section 364(c), the debtor must prove that it cannot obtain credit on any less intrusive basis (i.e., through the use of section 364(a), (b), or (c)). Second, the debtor …


Annual Survey Of Virginia Law: Bankruptcy Law, Michael A. Condyles Jan 1992

Annual Survey Of Virginia Law: Bankruptcy Law, Michael A. Condyles

University of Richmond Law Review

This survey article reviews and analyzes legislative and judicial developments that have occurred in bankruptcy law between April, 1991 and April, 1992. The article is intended to alert the general practitioner to significant recent developments in the bankruptcy area. Legislative changes made to Virginia statutory law and federal bankruptcy decisions issued within the Fourth Circuit are the focus of this article.


University Of Richmond Law Review Jan 1992

University Of Richmond Law Review

University of Richmond Law Review

No abstract provided.