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 ?
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.
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.
collectively, "Safety Components"), a leading, low cost supplier of automotive airbag fabric and cushions in the United States, which commenced chapter 11 cases on April 10, 2000, obtained final bankruptcy court approval of debtor-in-possession financing in Delaware this afternoon.
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.
that provides for debtor-in-possession financing during its reorganization proceeding under Chapter 11 of the United States Bankruptcy Code and, subject to the fulfillment of certain conditions, for permanent financing for the Company after it emerges from its bankruptcy case.
115 Million Debtor-In-Possession Financing With Barclays Capital Completed
NYSE: CG) to reduce its debtor-in-possession financing agreement to a $25 million letter of credit facility.
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
that it has secured Debtor-In-Possession financing from Sterling