The Prospect Medical decision treated preservation of the going concern as a form of adequate protection — opening the door to priming DIPs even when equity cushions are thin or nonexistent. Is this the start of a new doctrinal shift, or simply an outlier from the Northern District of Texas? This session examines what the case means for DIP financing, valuation and secured lender rights.
Learning Objectives:
- Attendees will analyze the legal and practical implications of using going-concern value as a basis for adequate protection in priming DIP financing structures.
- Attendees will evaluate the impact of the Prospect Medical decision on debtor-in-possession financing, valuation disputes, and secured creditor rights.
- Attendees will assess whether recent case law signals a doctrinal shift in DIP financing standards or represents a limited, fact-specific deviation from established precedent.