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Case 16-42529 Doc 53 Filed 04/13/16 Entered 04/13/16 12:50:57 Main Document <br />Pg 22 of 31 <br />Res. Inc., No. 15-33896 (Bankr. E.D. Va. Aug. 5, 2015 and Sept. 3, 2015) (Docket Nos. 122 <br />and 353) (same); In re Patriot Coal Com., No 15-32450 (Bankr. E.D Va. May 13, 2015, <br />May 14, 2015 and June 4, 2015) (Docket Nos. 57, 88, 240 and 243) (same); In re Magnetation <br />LLC, No. 15-50307 (Bankr. D. Minn. May 7, 2015) (Docket Nos. 59 and 64) (same); In re James <br />River Coal Co., No. 14-31848 (Bankr. E.D. Va. Apr. 10, 2014 and May 9, 2014) (Docket Nos. <br />78, 83 and 239) (same); In re Patriot Coal Com., No. 12-12900 (Bankr. S.D.N.Y. July 10, 2012, <br />July 16, 2012 and Aug. 2, 2012) (Docket Nos. 33, 91, 253 and 258) (same).21 <br />Section 364 Provides a Basis to Allow the Debtors to Enter Into New Premium Financing <br />Arrangements <br />42. Section 364(a) of the Bankruptcy Code authorizes a debtor to incur and <br />pay unsecured debt in the ordinary course of business. Premiums financed by premium finance <br />agreements could be viewed as unsecured debt that a debtor could pay in the ordinary course of <br />business under section 364(a). Alternatively, section 364(b) of the Bankruptcy Code enables the <br />court to authorize a debtor to incur unsecured credit "allowable under section 503(b)(1) of this <br />title as an administrative expense" after notice and a hearing. Out of an abundance of caution, <br />the Debtors request authority, pursuant to section 364(b), to execute postpetition premium <br />financing agreements and make payments thereunder. <br />43. Finally, it is possible that the Debtors may not be able to obtain premium <br />financing agreements on a wholly unsecured basis. Section 364(c) of the Bankruptcy Code <br />permits a debtor unable to obtain unsecured credit in the ordinary course of business under <br />section 364(a) of the Bankruptcy Code to obtain credit (a) with priority over any or all <br />administrative expenses specified in sections 503(b) or 507(b) of the Bankruptcy Code, <br />21 Unreported orders listed in the text above are not attached to this Motion. Copies of these orders will be <br />made available to the Court or other parties upon request made to the Debtors' counsel. <br />-22- <br />