Cash Collateral Orders Revisited Following ResCap

Law360, New York (April 8, 2014, 1:53 PM EDT) -- Every restructuring professional knows that cash is king when planning a successful Chapter 11 filing. Continuing to fund payroll, satisfy taxes, and procure the goods and services necessary for operating without interruption are essential elements of seamlessly transitioning into bankruptcy. To achieve any one of these things, access to sufficient funding is paramount.

But a debtor’s right to use its cash, as well as the cash proceeds of other assets, becomes problematic if all or most of that cash is encumbered. In that case, the debtor...
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