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Debtors operating businesses typically need financing, and often need it on the first day of the case or at least within the first week. The two most common sources are use of cash collateral under Code § 363(c)(2) & (3), and post-petition "DIP" loans under Code § 364(c). For both kinds of credit, Rule 4001 requires that a final hearing may not be commenced earlier than 15 days after service of the motion, and a preliminary hearing may authorize use of the credit only "to the extent necessary to avoid immediate and irreparable harm to the estate pending a final hearing." Rule 4001(b)(2) (cash collateral) & 4001(c)(2)(DIP loans).
Typically a postpetition lender, whether under a DIP loan or through use of cash collateral, will not extend such credit unless at least the debtor agrees to the amount of prepetition debt outstanding, the validity and priority of the lien securing such debt, and that it is not subject to any setoff or preference or fraudulent conveyance attack. This is sometimes referred to colloquially as taking "the dive." Most courts seem to have concluded this may be necessary and appropriate for a debtor, after notice and a hearing, but expressly reserve such challenges for other parties such as a creditor's committee or perhaps a subsequently appointed
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