Illinois Post-Petition Loan and Security Agreement between Various Financial Institutions regarding revolving line of credit

• Category: Corporations - Public - Loans
• State: Multi-State
• Control #: US-EG-9368
• Format: Word; Rich Text

Description

Post-Petition Loan and Security Agreement between Various Financial Institutions, Bank of America, N.A., Fruit of the Loom, Inc., Fruit of the Loom, Ltd. and Domestic Subsidiaries of Fruit of the Loom, Inc. regarding revolving line of credit dated Illinois Post-Petition Loan and Security Agreement is a legal document that establishes the terms and conditions between various financial institutions, allowing the borrower to access a revolving line of credit after filing for bankruptcy or insolvency under Chapter 11 of the United States Bankruptcy Code. This agreement enables the debtor company to obtain financing to fund ongoing operations during the reorganization process. The key purpose of the Illinois Post-Petition Loan and Security Agreement is to provide the debtor with immediate access to credit during the bankruptcy proceedings, enabling them to continue their operations, make necessary payments, meet obligations, and maintain business continuity. This revolving line of credit is secured by collateral, which assures the lender a degree of protection if the debtor fails to repay the loan. Keywords: Illinois, Post-Petition Loan, Security Agreement, Financial Institutions, revolving line of credit, bankruptcy, insolvency, Chapter 11, legal document, debtor company, financing, reorganization process, ongoing operations, collateral, lender, repayment. Different types of Illinois Post-Petition Loan and Security Agreements regarding revolving lines of credit may include: 1. Traditional Post-Petition Loan and Security Agreement: This is the standard agreement that outlines the terms and conditions of a revolving line of credit provided by various financial institutions to a debtor after filing for bankruptcy under Chapter 11. 2. Unsecured Post-Petition Loan and Security Agreement: In some cases, a debtor may not possess sufficient collateral to secure the revolving line of credit. In such instances, this type of agreement may be used, wherein the financial institutions provide an unsecured loan to the debtor, relying solely on the credibility and repayment capacity of the borrower. 3. DIP (Debtor-In-Possession) Financing Agreement: This agreement specifically caters to debtors who are authorized by the bankruptcy court to act as debtors-in-possession under Chapter 11. These loans are secured by the debtor's assets and provide a revolving line of credit during the reorganization process. 4. Multi-Financial Institution Post-Petition Loan Agreement: Instead of a single financial institution extending a revolving line of credit, this agreement involves multiple financial institutions jointly providing the loan. This arrangement enables the debtor to access larger amounts of credit and benefit from the expertise and resources of multiple lenders. Keywords: Traditional, Unsecured, DIP Financing, Multi-Financial Institution, debtor-in-possession, assets, bankruptcy court, reorganization process, credibility, repayment capacity.

Illinois Post-Petition Loan and Security Agreement is a legal document that establishes the terms and conditions between various financial institutions, allowing the borrower to access a revolving line of credit after filing for bankruptcy or insolvency under Chapter 11 of the United States Bankruptcy Code. This agreement enables the debtor company to obtain financing to fund ongoing operations during the reorganization process. The key purpose of the Illinois Post-Petition Loan and Security Agreement is to provide the debtor with immediate access to credit during the bankruptcy proceedings, enabling them to continue their operations, make necessary payments, meet obligations, and maintain business continuity. This revolving line of credit is secured by collateral, which assures the lender a degree of protection if the debtor fails to repay the loan. Keywords: Illinois, Post-Petition Loan, Security Agreement, Financial Institutions, revolving line of credit, bankruptcy, insolvency, Chapter 11, legal document, debtor company, financing, reorganization process, ongoing operations, collateral, lender, repayment. Different types of Illinois Post-Petition Loan and Security Agreements regarding revolving lines of credit may include: 1. Traditional Post-Petition Loan and Security Agreement: This is the standard agreement that outlines the terms and conditions of a revolving line of credit provided by various financial institutions to a debtor after filing for bankruptcy under Chapter 11. 2. Unsecured Post-Petition Loan and Security Agreement: In some cases, a debtor may not possess sufficient collateral to secure the revolving line of credit. In such instances, this type of agreement may be used, wherein the financial institutions provide an unsecured loan to the debtor, relying solely on the credibility and repayment capacity of the borrower. 3. DIP (Debtor-In-Possession) Financing Agreement: This agreement specifically caters to debtors who are authorized by the bankruptcy court to act as debtors-in-possession under Chapter 11. These loans are secured by the debtor's assets and provide a revolving line of credit during the reorganization process. 4. Multi-Financial Institution Post-Petition Loan Agreement: Instead of a single financial institution extending a revolving line of credit, this agreement involves multiple financial institutions jointly providing the loan. This arrangement enables the debtor to access larger amounts of credit and benefit from the expertise and resources of multiple lenders. Keywords: Traditional, Unsecured, DIP Financing, Multi-Financial Institution, debtor-in-possession, assets, bankruptcy court, reorganization process, credibility, repayment capacity.