Back To Basics: Obtaining Court Approval Of DIP Financing
July 17, 2013, 11:39 AM EDT
Law360, New York (July 17, 2013, 11:39 AM EDT) -- The bankruptcy court must authorize the debtor’s entry into any post-petition financing arrangement secured by assets of the estate. See 11 U.S.C. §§ 364(c)-(d). The bankruptcy court can only authorize such financing after notice and a hearing. See id. Rule 9013 of the Federal Rules of Bankruptcy Procedure provides the following:
A request for an order, except when an application is authorized by these rules, shall be by written motion, unless made during a hearing. The motion shall state with particularity the grounds therefor, and shall...