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Debtor-in-Possession Financing - DIP Financing

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Debtor-in-Possession Financing - DIP Financing
Financing arranged by a company while under the Chapter 11 bankruptcy process. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims.

Notes:
Chapter 11 gives the debtor a fresh start, which is, however, subject to the debtor's fulfillment of its obligations under its plan of reorganization.
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