dip-financing-motion

name	dip-financing-motion
language	en
description	Drafts U.S. bankruptcy DIP financing motions under 11 U.S.C. §§ 361-364, including superpriority claims, priming liens, and adequate protection. Use when preparing a DIP financing motion, Section 364(c)/(d) motion, priming lien motion, or emergency post-petition financing request.

DIP Financing Motion

Drafts a court-ready motion seeking approval of post-petition financing under the Bankruptcy Code.

Prerequisites

Gather before drafting:

1. Caption: court, district, case number, debtor name(s), chapter, judge, hearing date/time
2. Facility terms: lender, size, pricing, maturity, draw conditions, covenants, milestones, defaults
3. Budget: 13-week cash flow forecast and sources/uses
4. Capital structure: existing secured debt, lien priorities, collateral description, cash collateral status
5. Adequate protection: proposed replacement liens, cash payments, equity cushion, reporting
6. Financing process: marketing efforts, alternatives considered, why unsecured credit is unavailable
7. Exhibits: term sheet or credit agreement, budget, declaration(s), proposed order
8. Local rules: judge-specific procedures for emergency relief, notice, and service

Motion Structure

I.    Preliminary Statement / Relief Sought
II.   Jurisdiction, Venue, and Statutory Authority
III.  Background and Need for Financing
IV.   Terms of Proposed DIP Facility
V.    Adequate Protection for Prepetition Secured Parties
VI.   Legal Standard and Argument
VII.  Notice and Hearing
VIII. Conclusion

Relief Sought Matrix

Relief	Statute	Required Showing	Evidence
Superpriority admin expense	§ 364(c)(1)	Unsecured credit unavailable under § 503(b)(1); reasonable terms	Process declaration; term sheet
Lien on unencumbered property	§ 364(c)(2)	Same + identify unencumbered collateral	Collateral schedule; lien analysis
Junior lien on encumbered property	§ 364(c)(3)	Same + priority structure	UCC/lien summary; intercreditor terms
Priming lien	§ 364(d)	Cannot obtain credit otherwise; adequate protection of existing lienholders	Adequate protection package; valuation

Required Findings

• Debtor cannot obtain unsecured credit under § 503(b)(1)
• DIP terms are fair, reasonable, arm's-length, and in the estate's best interests
• Adequate protection for existing secured creditors (if primed or subordinated)
• Financing necessary to preserve going-concern value

Adequate Protection Tools

Tool	When Used	Data Needed
Replacement liens	Collateral base stability	Collateral description; lien order
Periodic cash payments	Cash collateral use or priming	Budget items; payment schedule
Equity cushion	Oversecured collateral	Valuation support
Reporting package	Ongoing monitoring	KPI and variance format
Carve-out	Professional fees	Amount; beneficiaries

Exhibits

• DIP credit agreement or term sheet
• 13-week cash flow forecast
• CFO/CRO/financial advisor declaration(s)
• Proposed order
• Lien and capital structure summary

Proposed Order Checklist

• Facility size and use of proceeds
• Authorized liens and priorities
• Adequate protection terms
• Reporting, milestones, and default remedies
• Final hearing scheduling / interim relief
• Service and notice findings

Pitfalls

• Priming liens: do not request unless adequate protection record is concrete and documented.
• Roll-ups / cross-collateralization: flag explicitly; provide statutory and case authority. Mark uncertain citations [VERIFY].
• Statutory references: cite precisely for every relief request. Mark uncertain citations [VERIFY].
• Factual assertions: tie every claim to a declaration or exhibit.
• Local rules: verify judge-specific emergency relief standards and notice requirements before filing.