Washington 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 The Washington Post-Petition Loan and Security Agreement between Various Financial Institutions is a legal document that outlines the terms and conditions for a revolving line of credit provided by multiple financial institutions to a borrower or debtor who has filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. This agreement aims to provide the debtor with the necessary funds to continue its operations while under bankruptcy proceedings and helps to facilitate the restructuring and reorganization efforts. The key purpose of the Washington Post-Petition Loan and Security Agreement is to establish the terms and conditions under which the debtor can access funds through a revolving line of credit. The agreement typically includes information such as the maximum borrowing limit, interest rates, repayment terms, and any additional fees or charges associated with the credit facility. Various types of Post-Petition Loan and Security Agreements may be established to suit the specific needs and circumstances of the debtor. Some of these agreements may include: 1. First Lien Post-Petition Loan and Security Agreement: This type of agreement gives the lenders a first priority security interest in the debtor's assets, ensuring they have a higher level of protection and priority in case of loan default or bankruptcy. 2. Second Lien Post-Petition Loan and Security Agreement: In this case, the lenders hold a subordinate security interest, meaning they have a lower priority in the event of bankruptcy compared to the first lien lenders. 3. Senior Secured Post-Petition Loan and Security Agreement: This agreement provides lenders with a superior claim over other unsecured creditors, granting them priority access to the debtor's assets and revenues. 4. Mezzanine Post-Petition Loan and Security Agreement: This type of agreement involves a combination of debt and equity financing, where the lenders have the option to convert their debt into equity if the debtor fails to meet the specified repayment terms. The Washington Post-Petition Loan and Security Agreement aims to protect the lenders' interests while simultaneously providing the debtor with the necessary financial support during the reorganization process. It plays a crucial role in helping the debtor navigate through the bankruptcy proceedings and emerge as a stronger and more financially stable entity.

The Washington Post-Petition Loan and Security Agreement between Various Financial Institutions is a legal document that outlines the terms and conditions for a revolving line of credit provided by multiple financial institutions to a borrower or debtor who has filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. This agreement aims to provide the debtor with the necessary funds to continue its operations while under bankruptcy proceedings and helps to facilitate the restructuring and reorganization efforts. The key purpose of the Washington Post-Petition Loan and Security Agreement is to establish the terms and conditions under which the debtor can access funds through a revolving line of credit. The agreement typically includes information such as the maximum borrowing limit, interest rates, repayment terms, and any additional fees or charges associated with the credit facility. Various types of Post-Petition Loan and Security Agreements may be established to suit the specific needs and circumstances of the debtor. Some of these agreements may include: 1. First Lien Post-Petition Loan and Security Agreement: This type of agreement gives the lenders a first priority security interest in the debtor's assets, ensuring they have a higher level of protection and priority in case of loan default or bankruptcy. 2. Second Lien Post-Petition Loan and Security Agreement: In this case, the lenders hold a subordinate security interest, meaning they have a lower priority in the event of bankruptcy compared to the first lien lenders. 3. Senior Secured Post-Petition Loan and Security Agreement: This agreement provides lenders with a superior claim over other unsecured creditors, granting them priority access to the debtor's assets and revenues. 4. Mezzanine Post-Petition Loan and Security Agreement: This type of agreement involves a combination of debt and equity financing, where the lenders have the option to convert their debt into equity if the debtor fails to meet the specified repayment terms. The Washington Post-Petition Loan and Security Agreement aims to protect the lenders' interests while simultaneously providing the debtor with the necessary financial support during the reorganization process. It plays a crucial role in helping the debtor navigate through the bankruptcy proceedings and emerge as a stronger and more financially stable entity.