Priming Lien

A lien securing a postpetition loan that is senior or equal to a lien that is already attached to a debtor’s assets. Approval of priming liens are sought under Bankruptcy Code § 364(d), and will not be authorized unless a bankruptcy court finds that the debtor cannot obtain credit elsewhere, and that the existing lienholder’s interest in its collateral is adequately protected, regardless of whether the priming lien is granted.

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