COLLATERAL, ADEQUATE PROTECTION, AND OPERATING CAPITAL
Although the preparation, confirmation, and
implementation of a plan of reorganization is at the heart of a
chapter 11 case, other issues may arise that must be addressed by
the debtor in possession. The debtor in possession may use, sell,
or lease property of the estate in the ordinary course of its
business, without prior approval, unless the court orders
otherwise. 11 U.S.C. § 363(c). If the intended sale or use is
outside the ordinary course of its business, the debtor must
obtain permission from the court.
A debtor in possession may not use “cash
collateral” without the consent of the secured party or
authorization by the court, which must first examine whether the
interest of the secured party is adequately protected. 11 U.S.C.
§ 363. Section 363 defines “cash collateral” as cash,
negotiable instruments, documents of title, securities, deposit
accounts, or other cash equivalents, whenever acquired, in which
the estate and an entity other than the estate have an interest.
It includes the proceeds, products, offspring, rents, or profits
of property and the fees, charges, accounts or payments for the
use or occupancy of rooms and other public facilities in hotels,
motels, or other lodging properties subject to a creditor’s