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Debtor in Possession Financing

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Debtor-in-Possession 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 DIP financing enables it to do so.

debtor in possession financing
Financing arranged during the time a company is in Chapter 11 bankruptcy.


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Cuticelli's company, Cuticelli Capital, provided debtor in possession financing and was the "Stalking Horse Bidder" after Sheldon Good & Company declared Chapter 11 bankruptcy in April.
It''s a known fact that companies that obtain bankruptcy financing have a much higher chance of emerging out of chapter 11 as a viable company than those that don''t secure debtor in possession financing.
In the past, debtor in possession financing was offered only to large companies that had substantial revenues and assets.
 
 
 
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