The Debtors’ Needs for the DIP Facility Sample Clauses

The Debtors’ Needs for the DIP Facility. (a) Good cause has been shown for the entry of this Order. The Debtors’ use of the funds advanced pursuant to this Order, the DIP Loan Documents, and the DIP Budget was and is immediate and critical. Entry of this Order will minimize any diminution in the value of the bankruptcy estates, and is in the best interests of the Debtors, their creditors, and the bankruptcy estates. The terms of the financing authorized hereby are fair and reasonable, reflect the Debtors’ exercise of prudent business judgment, and are supported by reasonably equivalent value and fair consideration. The Debtors and their estates would suffer immediate and irreparable harm unless the Court authorizes the Debtors to obtain up to $3,000,000 in financing, which amount includes the Interim Borrowing Advance of $600,000 and final Advances in an amount up to a maximum of $3,000,000 (inclusive of the Interim Borrowing Advance) (the “Final Borrowing Advance). (b) The Debtors have an immediate need to obtain funds with which to provide payroll, deposits to utilities, working capital and for payment of other critical vendors, continue their operations, and administer and preserve the value of their estates. The absence of additional funding would immediately and irreparably harm the Debtors, their estates and their creditors and the possibility for a successful reorganization. Approval of the DIP Facility will provide the Debtors with immediate and ongoing access to borrowing availability to pay their {00343138-5} current and ongoing operating expenses, including postpetition salaries and utility and vendor costs. Approval of the DIP Facility will also provide the Debtors the ability to pay in full all obligations due to PacWest on account of any pre-petition loans and other extensions of credit under the PacWest Agreement which payment is in the best interest of the estates as the terms of the DIP Facility are considerably more advantageous to the Debtors than are the terms of the PacWest Loans. (c) The Debtors are unable to obtain unsecured credit allowable under Bankruptcy Code 503(b)(1) as an administrative expense. The Debtors are also unable to obtain secured credit, allowable under Bankruptcy Code 364(c)(2), (c)(3), or under 364(d) except under the terms and conditions provided in this Order. No parties were willing to provide financing in the form of unsecured credit allowable under section 503(b)(1), as an administrative expense under section 364(a) or (b) of the Bankruptcy Code, or...
Sample 1
AutoNDA by SimpleDocs

Related to The Debtors’ Needs for the DIP Facility

  • Certain Obligations of Holders of Receipts and the Company Filing Proofs, Certificates and Other Information 7 SECTION 3.2 Payment of Taxes or Other Governmental Charges 7 SECTION 3.3 Warranty as to Stock 8

  • General Provisions Applicable to Loans and Letters of Credit 4.1. Interest Rates and Payment Dates 4.2. Conversion and Continuation Options 4.3. Minimum Amounts of Sets

  • CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT AND MERGER SUB The obligations of Parent and Merger Sub to effect the Merger and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

  • Limitations of Liability of the Board and Shareholders of the Investment Company The execution and delivery of this Agreement have been authorized by the Board of the Investment Company and signed by an authorized officer of the Investment Company, acting as such, and neither such authorization by the Board nor such execution and delivery by such officer shall be deemed to have been made by any of them individually or to impose any liability on any of them personally, and the obligations of this Agreement are not binding upon any member of the Board or Shareholders of the Investment Company, but bind only the property of the Fund, or Class, as provided in the Declaration of Trust.

  • Conditions to Obligations of Parent and Merger Sub The obligations of Parent and Merger Sub to effect the Merger are also subject to the satisfaction or waiver by Parent at or prior to the Effective Time of the following conditions:

  • Conditions Precedent to Loans and Letters of Credit 32 Section 3.1 Conditions To Effectiveness.................................................32 Section 3.2 Each Credit Event...........................................................33 Section 3.3 Delivery of Documents.......................................................34

  • CONDITIONS TO LOANS AND LETTERS OF CREDIT The obligations of Lenders to make Loans and the issuance of Letters of Credit hereunder are subject to the satisfaction of the following conditions.

  • Conditions to the Obligations of Parent and Merger Sub The obligations of Parent and Merger Sub to consummate the Merger are subject to the satisfaction or waiver (where permissible) of the following additional conditions:

  • Conditions to Obligations of Buyer and Seller The obligations of Buyer and Seller to complete the transactions contemplated by this Agreement are subject to the satisfaction at or prior to the Closing of the following conditions:

  • Conditions to Obligations of Parent and Sub The obligations of Parent and Sub to effect the Merger are further subject to the satisfaction or waiver on or prior to the Closing Date of the following conditions:

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!