Mr Charles M Oellermann

Charles M Oellermann

Updates

Insolvency & Restructuring

Use of cash collateral to pay prepetition debt not prohibited by Jevic
USA | 26 June 2020

The ability of a bankruptcy trustee or a Chapter 11 debtor in possession to use cash collateral during the course of a bankruptcy case may be vital to the debtor's prospects for a successful reorganisation. However, because of the unique nature of cash collateral, the Bankruptcy Code sets out special rules that apply to the non-consensual use of such collateral to protect the interests of the secured creditor involved.