Revolving Credit (and Guaranty) Agreement
(DIP Credit Agreement)

Summary

This revolving credit (and guaranty) agreement template is executed between a Chapter 11 debtor-in-possession (DIP), the debtor's guarantors on the loan (if any), a group of DIP lenders, and the agent for the DIP lenders. This template includes practical guidance, drafting notes, and optional clauses. The process for entering into a DIP credit agreement is illustrated below: A revolving credit agreement will typically specify a number of conditions for any future advance by the lender, including the absence of any default, an adequate collateral base, and the reaffirmation of the borrower's representations and warranties. The credit agreement may also include a provision relieving the lenders of their funding obligations upon a material adverse change in the borrower or the overall economic or lending environment. For more information, see DIP Financing, DIP Terms, and DIP Loans and Documentation. For a template motion, see DIP Financing Motion. For additional DIP resources, see DIP Financing Resource Kit. To track key terms contained in DIP financing credit agreements, see DIP Financing Key Terms Tracker.