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Case 16-42529 Doc 32 Filed 04/13/16 Entered 04113/16 11:43:47 Main Document <br />Pg 10 of 21 <br />Authority to Pledge Collateral and Other Credit Support under Cleared Transactions <br />20. The Debtors may be required in certain circumstances to provide credit support <br />(collectively, "Credit Support") to ADM, including by prepaying obligations, pledging collateral, <br />posting initial or variation margin or providing other forms of collateral to ADM. The Debtors <br />thus request authority to provide necessary Credit Support to ADM in accordance with the ADM <br />Agreement or otherwise agreed; provided, however, that the provision of Credit Support is <br />consistent with the Debtors' postpetition debtor in possession financing facility (the "DIP <br />Financing Agreement") and the A/R Facility. The Debtors believe that ADM was fully <br />collateralized as of the Petition Date. The Debtors also believe that ADM is entitled to the <br />protections of section 364(e) of the Bankruptcy Code. <br />21. In the absence of such relief, ADM may refuse to consummate transactions if the <br />Debtors do not comply with their margin requirements. Therefore, to preserve the value of the <br />Debtors' estates, the Debtors request the express authority to provide Credit Support under the <br />ADM Agreement. <br />22. Section 364(c) of the Bankruptcy Code permits a debtor unable to obtain <br />unsecured credit in the ordinary course of business under section 364(a) of the Bankruptcy Code <br />to obtain credit (a) with priority over any or all administrative expenses specified in sections <br />503(b) or 507(b) of the Bankruptcy Code, (b) secured by a lien on property of the estate that is <br />not otherwise subject to a lien or (c) secured by a junior lien on property of the estate that is <br />subject to a lien. To obtain secured credit on a postpetition basis, a debtor must demonstrate "by <br />a good faith effort that credit was not available" to the debtor on an unsecured or administrative <br />expense basis. Bray v. Shenandoah Fed. Say. & Loan Ass'n (In re Snowshoe Co.), 789 F.2d <br />1085, 1088 (4th Cir. 1986) (affirming lower court's approval of a loan made to the debtor under <br />section 364(d) of the Bankruptcy Code). See also In re Ames Dept. Stores, Inc., 115 B.R. 34, 37 <br />-10- <br />