Cash Collateral Management

Cash collateral management in debtor-in-possession (DIP) proceedings refers to the management of cash or cash equivalents that a business retains while undergoing bankruptcy restructuring. Since this cash is crucial for day-to-day operations, the court often requires oversight to ensure it is used responsibly. Debtors must demonstrate how they plan to manage this cash to continue operating while repaying creditors. Proper management allows the business to stabilize and potentially emerge from bankruptcy, while protecting the interests of creditors who have a claim on those funds.