REQUIREMENTS FOR CASH COLLATERAL AND

FINANCING MOTIONS AND ORDERS (a) Motions. Except as provided herein and elsewhere in these Local Bankruptcy Rules, all cash collateral and financing requests under 11 U.S.C. §§ 363 and 364 must be brought by motion filed under Federal Bankruptcy Rules 2002, 4001 and 9014. (1) Special Provisions to be Highlighted. All cash collateral and financing motions must recite whether the proposed form of order and/or underlying cash collateral stipulation or loan agreement contains any provision of the type described below; identify the location of any such provision in the proposed form of order, cash collateral stipulation, and/or loan agreement; and state the justification for the inclusion of such provision: (A) Provisions that grant cross-collateralization protection (other than replacement liens or other adequate protection) to the prepetition secured creditors (i.e., clauses that secure prepetition debt by postpetition assets in which the secured creditor would not otherwise have a security interest by virtue of its prepetition security agreement or applicable law); (B) Provisions that bind the estate or other parties in interest with respect to the validity, perfection, or amount of the secured creditor’s prepetition lien or the waiver of claims against the secured creditor without first giving parties in interest Ver.

25.01 (December 1, 2025) 35 at least seventy-five (75) days from the entry of the order and the creditors’ committee, if formed, at least sixty (60) days from the date of its formation to investigate such matters; (C) Provisions that seek to waive, without notice, whatever rights the estate may have under 11 U.S.C. § 506(c); (D) Provisions that immediately grant to the prepetition secured creditor liens on the debtor’s claims and causes of action arising under 11 U.S.C. §§ 544, 545, 547, 548 and 549; (E) “Roll up” provisions that deem prepetition secured debt to be postpetition debt or that use postpetition loans from a prepetition secured creditor to pay part or all of that secured creditor’s prepetition debt, other than as provided in 11 U.S.C. § 552(b); (F) Provisions that provide treatment for the professionals retained by a committee appointed by the United States Trustee different from those professionals retained by the debtor with respect to a professional fee carve-out, and provisions that limit the committee’s attorney’s use of the carve-out; (G) Provisions that prime any secured lien without the consent of that lienor; and (H) Provisions that grant a secured creditor any relief from the automatic stay, whether by terminating, modifying, or conditioning the stay, without further order of the Court; Ver. 25.01 (December 1, 2025) 36 (2) All cash collateral and financing motions must also: (A) provide a summary of the essential terms of the proposed use of cash collateral and/or financing (e.g., the maximum borrowing available on a final basis, the interim borrowing limit, borrowing conditions, interest rate, maturity, events of default, use of funds limitations, and protections afforded under 11 U.S.C. §§ 363 and 364); (B) state whether there is an insider relationship between the debtor and the creditor whose cash collateral is to be used or who proposes to provide postpetition financing and, if so, describe the nature of the relationship; (C) include a cash flow projection for any interim period in which cash collateral and/or postpetition financing is sought that includes both projected revenue and a line-item proposed budget for the use of the funds; (D) describe and state the value of the collateral to be pledged in connection with the use of cash collateral and/or postpetition financing; and (E) identify each party claiming to have an interest in the collateral to be pledged in connection with the use of cash collateral and/or postpetition financing and estimate the amount each such party is owed as of the date the petition was filed (including, if known, any accrued unpaid interest, costs, or fees as provided in any prepetition agreements). (3) A proposed order approving cross-collateralization or a rollup must include language that reserves the right of the Court to unwind, after notice and hearing, the postpetition protection provided to the prepetition lender or the pay down of the prepetition debt, whichever is applicable, in the event that there is a timely and successful challenge Ver. 25.01 (December 1, 2025) 37 to the validity, enforceability, extent, perfection, or priority of the prepetition lender’s claims or liens, or a determination that the prepetition debt was undersecured as of the petition date, and the cross-collateralization or rollup unduly advantaged the lender.

(b) Interim Relief. When financing motions are filed with the Court on or shortly after the petition date, the Court may grant interim relief pending review by parties in interest of such debtor in possession financing arrangement. Such interim relief must be only what is necessary to avoid immediate and irreparable harm to the estate pending a final hearing.