COLLATERAL, ADEQUATE PROTECTION, AND OPERATING CAPITAL
Adequate protection may be required to
protect the value of the creditor’s interest in the property
being used by the debtor in possession. This is especially
important when there is a decrease in value of the property. The
debtor may make periodic or lump sum cash payments, or provide an
additional or replacement lien that will result in the creditor’s
property interest being adequately protected. 11 U.S.C. § 361.
When a chapter 11 debtor needs operating
capital, it may be able to obtain it from a lender by giving the
lender a court-approved “superpriority” over other unsecured
creditors or a lien on property of the estate. 11 U.S.C. § 364.