Bankruptcy Financing


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Bankruptcy Financing

Financing made available to a debtor in possession, which is a company that maintains its operations during a Chapter 11 bankruptcy. A debtor in possession is generally attempting to fulfill its reorganization plan, discharging certain debts and changing any structural weaknesses to put it on a path to profitability. A company often requires financing in order to restructure, and bankruptcy financing enables it to do so, though at a very high interest rate to compensate the lender for the risk of making money available to the debtor in possession.
References in periodicals archive ?
Global Banking News-November 19, 2013--Barclays could make a deal in bankruptcy financing with Detroit(C)2013 ENPublishing - http://www.
Chrysler took $7 billion in government loans and another $5 billion in bailout and bankruptcy financing.
GM's government deadline is June 1, but the Obama administration said it will provide bankruptcy financing if the company cannot successfully restructure outside of court.
9bn in bankruptcy financing Delta Air Lines Inc has entered into talks with its lenders.
Delta discusses possible bankruptcy financing with lenders.
To assist with the bankruptcy financing and restructuring, Ultimate has received a commitment for up to $113 million in debtor-in-possession financing from Wells Fargo Retail Finance and $5.
Spiegel lined up $400 million in bankruptcy financing and said its stores and catalog operations will remain open as usual as it begins a bankruptcy process that will last six months to a year.
These motions are primarily designed to obtain post bankruptcy financing and minimize the impact on the Company's operations, customers and employees.
00% in the after-hours trade on Monday, January 12, after Wall Street Journal reported that Salus Capital Partners has offered the struggling electronics retailer $500 million in bankruptcy financing.
Johnson Controls was initially signed up to support the company's bankruptcy financing, but decided to withdraw to avoid a conflict with Wanxiang.
Bankrupt United Airlines' parent company, UAL Corp, has announced that it is planning to take action to prevent the repossession of 14 aircraft by increasing its bankruptcy financing to USD350m from USD310m.
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