Dream Big Restaurants, LLC Secures Use of Cash Collateral

October, 2019

When a business debtor files chapter 11 protection, it must seek authority to use its cash collateral (money, accounts receivable, and inventory) when that cash collateral secures its debt obligations.  At an evidentiary hearing before the South Carolina bankruptcy court, John Stockdale, Jr. successfully established, over the objections of the senior lender, the United States trustee, and the franchisor, that the Debtor needed the use of its cash collateral to avoid immediate and irreparable harm including the closure of its franchise locations.  This preliminary victory allows the debtor to successfully operate in the chapter 11 environment.