In re Carbone Companies, Inc.
United States Bankruptcy Court for the Northern District of Ohio
395 B.R. 631 (2008)
Relevant factsFree
Carbone Companies (plaintiff/debtor), a construction firm, defaulted on a $15 million secured loan from Fifth Third Bank (creditor); after the bank obtained a $16 million judgment and moved to execute, Carbone filed Chapter 11 the next day and sought court authorization to use cash collateral to keep operating, presenting projected cash flow evidence and testimony that clients would continue doing business with it during the case.
IssueFree
Whether, under the Bankruptcy Code, a debtor in possession may use cash collateral to continue business operations if the secured parties' interests are adequately protected.