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Case 16-42529 Doc 32 Filed 04/13/16 Entered 04/13/16 11:43:47 Main Document <br />Pg 11 of 21 <br />(Bankr. S.D.N.Y. 1990) (debtor must demonstrate inability to obtain unsecured credit to acquire <br />approval of loan under section 364(c)). In making this showing, the Bankruptcy Code "imposes <br />no duty to seek credit from every possible lender before concluding that such credit is <br />unavailable." In re Snowshoe Co., 789 F.2d at 1088. See also In re Ames Dept. Stores, 115 B.R. <br />at 40 (to obtain relief under section 364(c), "a debtor is not required to seek credit from every <br />possible source"). Courts grant a debtor considerable deference in exercising its sound business <br />judgment to obtain such credit, provided that the agreement is consistent with the provisions of, <br />and policies underlying the Bankruptcy Code. See In re Farmland Indus., Inc., 294 B.R. <br />at 879-81 (court may consider debtor's business judgment, among other things, in determining <br />whether to approve postpetition financing under section 364). <br />23. Inability to provide Credit Support to ADM could cause disruption to the Debtors' <br />operations and expose the Debtors to fluctuations in market prices. Further, with respect to those <br />transactions under the ADM Agreement that are used for hedging purposes, any future posting of <br />collateral will not result in any net loss to the Debtors. ADM will realize on its collateral only if <br />the Debtors owe ADM money. The Debtors will owe money to ADM for hedging transactions, <br />and the collateral that will have been posted will be at risk, only when the prices of the subject of <br />the hedge become favorable to ADM. In these situations, although the Debtors may owe money <br />on account of the transaction, the Debtors' businesses will have benefited from the favorable <br />price movements of the hedge in question. Consequently, the losses, if any, from the transaction <br />that serve as a hedge on operating costs, will likely be offset by gains in the Debtors' operations. <br />Thus, the benefits of the Debtors' hedging strategy at ADM can be realized only by the Debtors <br />continuing their prepetition practices. <br />-11- <br />