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. A revolving credit loan 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. In light of the 2008 credit crisis, lenders often include a provision relieving 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.