See e.g., In re Sheehan, 38 B.R. 859 (Bankr.D.S.D. 1984); In re Adamson Co., Inc., 29 B.R. 937 (Bankr.E.D.Va. 1983); In re Anderson Walker Industries, Inc., 3 B.R. 551 (Bankr.C.D. Cal. 1980); In re Sullivan Ford Sales, 2 B.R. 350 (Bankr.D.Me. 1980). In the only case involving the issue of adequate protection, Anderson-Walker Industries, the creditor who was objecting to the use of cash collateral was vastly oversecured: its collateral was worth 7.3 times its secured claim.
Because the interests of other creditors may be prejudiced through the granting of a section 364(c) priority, due process requires that such creditors receive notice and a chance to object to the priority at a hearing before the bankruptcy court. See Mullane v. Central Hanover Bank and Trust Co., 339 U.S. 306, 70 S.Ct. 652, 94 L.Ed. 865 (1950); In re Adamson Co., Inc., 29 B.R. 937 (Bkrtcy.E.D.Va. 1983). Of course, in emergency situations the appropriate notice and hearing are not subject to the strict requirements of Bankruptcy Rule 1002. In the instant case, the record is clear that the notice provided was short.
In addition, because the Absent Class Members have not filed proofs of claim with the bankruptcy court, any unfiled claims may not be consolidated into a class claim. The movants merely assert that the Absent Class Members will not receive adequate notice of their rights or a fair opportunity for a hearing and cite Mullane v. Central Hanover Bank Trust Co., 339 U.S. 306, 70 S.Ct. 652, 94 L.Ed. 865 (1950), International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945) and In re Adamson Co., Inc., 29 B.R. 937, 941 (Bankr.E.D.Va. 1983) for this proposition. The so-called Absent Class Members will not be deprived of due process if a class certification is denied.
Under the present Bankruptcy Code the obtaining of credit authorization can only occur after creditors have been provided with notice and the court has entered an order authorizing the same. In re Adamson Co., Inc., 29 B.R. 937, 939 (Bankr.E.D.Va. 1983). Cf. also In re Sullivan Ford Sales, 2 B.R. 350 (Bankr.D.Me. 1980); In re Monarch Circuit Industries, Inc., 41 B.R. 859, 862 (Bankr.E.D.Pa. 1984).
1986), the Court indicates that the burdens of the Debtor are greater in a presentation of a § 364(c) Motion than they would be in a request by the Court to approve an order settling a controversy, which the Ellingsen court suggests would be the standard in a request to approve credit extended per 11 U.S.C. § 364(b). In In re Adamson Co., 29 B.R. 937, 940 (Bankr.E.D.Va. 1983), the court holds that, in an expedited proceeding, "the granting of a § 364(c) priority should carry at least the same if not a heavier burden of proof than that of a petitioner asking for a temporary restraining order must bear." We recognize, as we discussed at length in the Opinion approving a settlement agreement effected by the Debtors there with a particular creditor seeking relief from the Debtors, that, generally, a debtor-in-possession has significant latitude in making judgments about the operation of his business, and this principle carries over to assessment of settlement agreements made by debtors-in-possession.
Maine 1980). See In re Garland Corp., 6 B.R. 456, 458 n. 2 (1st Cir. BAP 1980); In re Adamson Co., Inc., 29 B.R. 937, 941 (Bkrtcy.E.Va. 1983). The Panel has held that under the Code an unsecured creditor has standing to appeal from an adverse decision of the trial court.
Under the present Bankruptcy Code the obtaining of credit authorization can only occur after creditors have been provided with notice and the court has entered an order authorizing the same. In re Adamson Co., Inc., 29 B.R. 937, 939 (Bankr.E.D.Va. 1983). Cf. also In re Sullivan Ford Sales, 2 B.R. 350 (Bankr.D.Me. 1980); In re Monarch Circuit Industries, Inc., 41 B.R. 859, 862 (Bankr.E.D.Pa. 1984).
Pursuant to Bankruptcy Rule 2002(i), notice to the creditors' committee, as reflected by their presubmission consent, satisfied the notice requirement under 11 U.S.C. § 364(c). See In re Adamson Company, Inc., 29 B.R. 937 (Bkrtcy.E.D.Va. 1983); In re Sullivan Ford Sales, 2 B.R. 350 (Bkrtcy.D.Me. 1980). CONCLUSIONS OF LAW
1980); In re Garland Corp., 6 B.R. 456, 3 COLLIER BANKR.CAS.2d (MB) 24 (Bankr. 1st Cir.1980); In re Adamson Co., 29 B.R. 937 (Bankr.E.D.Va.1983). Notice and hearing as used in § 364(c) is defined by the Bankruptcy Code as follows: