Debtor-in-possession financing


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Debtor-in-possession financing

New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims.

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.
References in periodicals archive ?
M2 EQUITYBITES-February 21, 2011-GE Capital agents USD505m debtor-in-possession financing to Borders(C)2011 M2 COMMUNICATIONS http://www.
A day later the court was allowed it an interim loan of $206 million of the $600 million in debtor-in-possession financing.
9bn debtor-in-possession financing will reportedly save the airline USD30m annually.
has agreed with its lenders to amend (the "Amendment") the company's debtor-in-possession financing (the "DIP Financing") to extend the maturity until Sept.
The availability of trade credit may be especially critical where the company lacks a debtor-in-possession financing facility or the company's current lending facility is inadequate to satisfy all of its cash needs.
UAL Corp, the parent company of US airline United Airlines, has received approval to amend and extend its debtor-in-possession financing to 30 September 2005.
Bankruptcy Court for the District of Delaware gave final approval to Louisville, Kentucky-based Vencor's $100 million debtor-in-possession financing.
These top lawyers give tips on deciding between bankruptcy and out-of-court restructuring, recovering collateral, negotiating debtor-in-possession financing, and determining the appropriate type of reorganization for a company.
115 Million Debtor-In-Possession Financing With Barclays Capital Completed
Access to Debtor-in-Possession Financing and First Day Motions Recognized in Canada
Receives Approval to Access $50 Million of its Approximately $300 Million in Debtor-in-Possession Financing
The companies have reached an agreement with Delta Mills' credit facility lender GMAC to provide debtor-in-possession financing, subject to the approval of the Bankruptcy Court, which the companies believe they will receive, though there can be no assurance to this effect.