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.
Application of a lender’s postpetition loan to pay prepetition debt owed to the lender, effectively cross-collateralizing the lender’s prepetition and postpetition debt. The prepetition debt is said to be “rolled over” to become postpetition debt. A “creeping roll-up” occurs where the lender makes postpetition advances over time (rather than in a lump sum) that result in the rollover of prepetition debt into postpetition debt.
See also Cash Collateral, Cash Collateral Order, DIP Financing, Replacement Lien.
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.