Application of a lender’s postpetition loan to pay prepetition debt owed to the lender, effectively cross-collateralizing the lender’s prepetition and postpetition debt. The prepetition debt is said to be “rolled over” to become postpetition debt. A “creeping roll-up” occurs where the lender makes postpetition advances over time (rather than in a lump sum) that result in the rollover of prepetition debt into postpetition debt.
See also Cash Collateral, Cash Collateral Order, DIP Financing, Replacement Lien.