debtor in possession financing

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.

debtor in possession financing

Financing arranged during the time a company is in Chapter 11 bankruptcy.
References in periodicals archive ?
to provide debtor in possession financing, the company said.
Cuticelli has expanded the firm's core disciplines into the asset backed securities arena, as an anchor investor in TALF bonds, and has become a provider of Debtor in Possession financing to real estate related entities in bankruptcy.
The Chapter 11 protection will give the company time to restructure its finances, and up to $400 million of debtor in possession financing from Citibank will augment cash from the company's continuing businesses to support operations during the Chapter 11 procedure.
"Debtor in possession financing" is a phrase frequently heard by the credit professional these days with a customer filing Chapter 11.
Editorial covers such topics as structured financing techniques, claims trading, debtor in possession financing, mass tort Chapter 11 cases, lender liability and tax considerations, intellectual property licenses, and securities and environmental law considerations.
Florida, USA-based charter airline operator Sky King Inc said it has secured debtor in possession financing and intends to seek immediate approval from a US bankruptcy court.
Frontier said that the concessions would help the airline as it attempts to, among other things, secure debtor in possession financing. Details of the agreements have not been released.
The usual first day orders have been entered by the Bankruptcy Court allowing the use of cash collateral, providing for notice procedures and providing for preliminary approval of debtor in possession financing in the sum of $125 million.
Frontier said that the concessions would help the airline as it attempts to, among other things, secure debtor in possession financing. The concessions will be re-evaluated in September, based on the company's financial position and the current economic conditions.