In re Devlin
United States Bankruptcy Court for the Middle District of Florida
185 B.R. 376 (1995)
Devlin (debtor), operating a Chapter 11 motel with broken air conditioning, boiler, and hot-water systems requiring immediate replacement, could not obtain unsecured financing for the repairs; his mother offered to finance the replacement in exchange for a first-priority lien on the motel, which was already encumbered by RTC's (creditor) existing first-priority lien, and Devlin sought bankruptcy court authorization for the debt and the resulting super-priority lien over RTC's existing interest.
Whether a debtor may obtain post-petition financing secured by a super-priority lien on already-encumbered property under section 364(d)(1) of the bankruptcy code, if post-petition financing is not otherwise available and pre-petition secured creditors are adequately protected.