debtor 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 ?
Tropical Sportswear and its domestic subsidiaries, since December 2004, have been operating as debtors-in-possession under chapter 11 of the U.
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.