debtor in possession

(redirected from Debtors-in-Possession)
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Debtor in possession

A firm that continues to operate under the Chapter 11 bankruptcy process.

Debtor in Possession

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. As such, a debtor in possession is drastically different from a company in liquidation, which ceases operations and sells all its assets.

debtor in possession

A company that continues to operate while in Chapter 11 bankruptcy.

debtor in possession (DIP)

(To pronounce the abbreviation always say each letter; it is not pronounced as a word.) In bankruptcy,a Chapter 11 debtor who remains in possession of his or her property and continues to operate a business or sell the property. The DIP must still obtain court approval for nonroutine transactions but is able to conduct business, receive monies, and pay bills, including a reasonable salary for the debtor. Contrast with the situation in which a bankruptcy trustee is appointed;in this case the trustee is then in control of all assets of the debtor.

References in periodicals archive ?
The companies continue to operate their businesses and manage their properties as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code.
The Company and Carriage House are operating as debtors-in-possession, which will allow the Company and Carriage House to continue operations during their bankruptcy cases.
The Plan was proposed jointly by the Debtors-in-Possession and the Official Committee of Creditors Holding Unsecured Claims (the "Creditors' Committee").
WEP") and was proposed jointly by the Debtors-in-Possession and the Official Committee of Creditors Holding Unsecured Claims (the "Creditors' Committee").
The Company and CSC will be debtors-in-possession and will continue to operate their business, subject to the supervision and orders of the Bankruptcy Court.
Hemdale Communications and its subsidiary have requested that these Chapter 11 proceedings be jointly administered for procedural purposes by the Court, while new management operates these businesses as debtors-in-possession, subject to the approval of the Court for their proposed actions.