Adequate Protection

The right of a secured creditor ( www.practicallaw.com/resource.do?item=:44401546) to receive protection against the decrease in value of its interest in the debtor's property during bankruptcy proceedings. It is also required when the debtor uses, sells or leases a secured creditor's collateral ( www.practicallaw.com/resource.do?item=:44405979), or if a creditor's lien ( www.practicallaw.com/resource.do?item=:44403115) on the collateral is primed ( www.practicallaw.com/6-383-2770) by a senior or equal lien approved by the court in a DIP financing ( www.practicallaw.com/resource.do?item=:44401340). Such protection may take the form of periodic cash payments or an additional lien, or other relief agreed to by the parties.

For further information, see Practice Note, Protecting the Lender's Interests in Bankruptcy: The Remedy of Adequate Protection ( www.practicallaw.com/8-382-8989) .

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