Bankruptcy Financing

Bankruptcy 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 bankruptcy financing enables it to do so, though at a very high interest rate to compensate the lender for the risk of making money available to the debtor in possession.
References in periodicals archive ?
Global Banking News-January 14, 2019--American utility in discussions with banks on bankruptcy financing
M2 EQUITYBITES-January 14, 2019--American utility in discussions with banks on bankruptcy financing
BANKING AND CREDIT NEWS-January 14, 2019--American utility in discussions with banks on bankruptcy financing
Cyrus ultimately wound up buying those notes itself, and in a last-minute courthouse hallway deal on Tuesday, it stepped in to provide key bankruptcy financing the retailer needs to keep operating.
The sources cautioned that negotiations between Sears, Lampert and other potential sources of bankruptcy financing remained fluid and might not result in a deal.
Versa will also pay cure costs and priority claims, and will take over a USD 20m bankruptcy financing commitment from US investment banker B.
Chrysler took $7 billion in government loans and another $5 billion in bailout and bankruptcy financing. Under the terms of its bailout it is not required to make payments on principal on the $7 billion U.S.
GM's government deadline is June 1, but the Obama administration said it will provide bankruptcy financing if the company cannot successfully restructure outside of court.
In an attempt to amend its USD1.9bn in bankruptcy financing Delta Air Lines Inc has entered into talks with its lenders.
Delta discusses possible bankruptcy financing with lenders.
To assist with the bankruptcy financing and restructuring, Ultimate has received a commitment for up to $113 million in debtor-in-possession financing from Wells Fargo Retail Finance and $5.6 million in DIP financing from Wattles.
Spiegel lined up $400 million in bankruptcy financing and said its stores and catalog operations will remain open as usual as it begins a bankruptcy process that will last six months to a year.
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