Adequate Protection

Protection of a secured lender, required by the Code, for any diminution in the value of its collateral in the course of a bankruptcy case resulting from the debtor’s use, sale or lease of the property, or any grant of a lien to another creditor under Section 364. May be provided by the making of cash payments to the lender in an amount equivalent to such diminution, by the grant of an additional or replacement lien of a value equivalent to such diminution, or by providing the secured lender with other relief that results in the lender realizing the “indubitable equivalent” of the amount of the diminution in the value of its collateral.

Bankruptcy Code § 361. See also Automatic Stay, Relief From Stay, Replacement Lien, Reverse Alchemy.

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