Jones Day updates

 
Use of cash collateral to pay prepetition debt not prohibited by Jevic
Jones Day
  • Insolvency & Restructuring
  • 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.

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