Laserfiche WebLink
<br /> <br />amount of $822,000; and {ii) to execute a promissory note and <br />security agreement and to provide a certificate of deposit with <br />the Bank to secure the Bank's potential payment obligation under <br />the letter of credit. <br />I. INTRODOCTION <br />The background of this matter is set forth in th.e <br />Motion. The facts set forth in the Motion are incorporated by <br />this reference. Unless the Debtor is able to obtain the <br />postpetition financing contemplated by the Motion, it will. not be <br />in compliance with federal regulations and statutes which govern <br />its reclamation of a mining site in LeFlore County, Oklahoma and <br />the Debtor may forfeit substantial security posted to secure that <br />reclamation obligation. <br />II. ARGIIMENT <br />Standards for Incurring Debt on a Secured Basis. The <br />Debtor seeks to incur secured financing under section 364(c)(2) <br />of the Bankruptcy Code and Bankruptcy Rule 4001. Section 364(c) <br />provides in part: <br />If the trustee is unable to obtain <br />unsecured credit allowable under section <br />503(b)(1) of this title as an administrative <br />expense, the court, after notice and a <br />hearing, may authorize the obtaining or the <br />incurring of a debt-- . <br />(2) secured by a lien on <br />property of the estate that is not <br />otherwise subject to a lien; . <br />Under section 364, a debtor must demonstrate that it is unable to <br />obtain unsecured financing, whether in the ordinary courE:e of <br />2 <br />