2020-07-24_GENERAL DOCUMENTS - C1980004

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Case 1:20-bk-12043 Doc 3 Filed 07/22/20 Entered 07/22/20 17:38:25 Desc Main Document Page 33 of 42 71. Absent the use of the Cash Collateral, the Debtors will be unable to operate their businesses as contemplated after the Petition Date and to meet their ongoing obligations. Approval of interim use of the Cash Collateral thus is crucial, and without such use, the Debtors' operations, its creditors and other parties in interest will suffer immediate and irreparable harm and its assets will markedly diminish in value going forward. 72. In consideration for the post-petition use of the pre-petition collateral, the Debtors propose to protect the interests of those Cash Collateral Creditors with replacement liens, superpriority claims, and certain periodic cash payments. 73. As for the need for post-petition financing, the Debtors have attempted to obtain post-petition financing proposals from a number of lenders, but were unable to obtain post- petition financing on an unsecured basis. 74. Before deciding to obtain post-petition financing from the DIP Lenders, the Debtors and the DIP Lenders engaged in arm's length, good faith negotiations, each with separate and independent counsel experienced in matters of finance and bankruptcy law. The Debtors were unable to obtain proposals for post-petition financing on terms and conditions more favorable to the Debtors' estates than those set forth in the DIP Term Sheet or the DIP Orders. 75. Accordingly, the Debtors have determined, in the exercise of their best and reasonable business judgment, that the financing to be provided by the DIP Lenders is the most favorable funding available under the circumstances and addresses the Debtors' immediate necessary financing needs during these Chapter 11 Cases. The financing available under the DIP Term Sheet and the DIP Orders will enable the Debtors, among other things, to avoid the 33