Issue link: https://mbozikis.ufcontent.com/i/1422521
106 perform for a party other than the debtor (i.e., a personal services agreement) and the nondebtor party does not consent to assumption or assignment of the contract or (ii) the contract is an agreement to provide a loan, debt financing or other financial accommodation to, or for the benefit of, the debtor, or to issue a security of the debtor. 4. Obtaining Postpetition Credit Given the poor financial condition facing most debtors, one of the most pressing issues that must be addressed when preparing for a bankruptcy filing is the source and terms of adequate working capital to permit the debtor to operate its business during a bankruptcy proceeding and to pay the costs of such proceeding. In order to provide guidance to both debtors and prospective lenders in this regard, in addition to the provisions of Section 363 governing the use of cash collateral, which is discussed in Chapter V.E.2.b., Section 364 of the Bankruptcy Code authorizes a trustee to borrow funds to assist it during the bankruptcy process. The terms on which such funds can be borrowed, as well as the required level of court approval, depend in part on the level of seniority provided to the lenders. For example, a trustee or debtor- in-possession can obtain unsecured credit and incur unsecured debt allowable as a first priority administrative expense under Section 503(b)(1). 11 U.S.C. § 364(a)–(b). Whether court approval is necessary depends on whether or not the incurrence of such debt is in the ordinary course of the debtor's business. Id. If a trustee or debtor-in-possession is unable to obtain unsecured credit pursuant to Section 364(a) or (b) of the Bankruptcy Code, the court, after notice and hearing, may authorize the trustee to obtain credit or incur debt: (i) with priority over other administrative expenses (a "super priority claim"); (ii) secured by a lien on unencumbered property of the estate; or (iii) secured by a junior lien on property of the estate that is already subject to a lien. 11 U.S.C. § 364(c). Additionally, if a trustee or debtor-in-possession cannot obtain credit under any of the foregoing provisions, the court may authorize the trustee or debtor-