Law360, New York (July 3, 2013, 12:24 PM EDT) -- Many debtor-in-possession loan agreements and orders will call for protections in favor of the DIP lender that fall under the category of “extraordinary provisions.” Most bankruptcy courts publish local rules and/or guidelines relating to DIP financing, which typically set forth requirements relating to the disclosure of such extraordinary provisions. See, e.g., Southern District of New York Bankruptcy Court Local Rule 4001-2, SD NY USBC LBR 4001-2.
Common examples of extraordinary provisions include:
Cross-collateralizations — Cross-collateralization involves securing prepetition debt with liens on post-petition assets. Typically, prepetition...
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