The "Devil's Dictionary
" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary
and used in today's bankruptcy arena.
A lien securing a postpetition credit extension that is senior or equal to a lien already attached to some or all of the debtor’s property. The bankruptcy court may not authorize a priming lien unless it finds that the debtor is unable to obtain credit otherwise and that the existing lienholder’s interest in its collateral is adequately protected notwithstanding the grant of the priming lien.
Like the Loch Ness Monster, the true priming lien is much feared but seldom actually sighted and is doubted by some to exist at all.
Bankruptcy Code § 364(d)(1). See also Adequate Protection, DIP Financing.
The "Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson, Dan Flanigan, and digital editor, Christopher Ward, who have a combined total of more than 130 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.