debtor in possession

(redirected from 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 ?
The Richmond-headquartered company's unsecured creditors first objected to the proposed debtor-in-possession funding, which will be given by a syndicate of lenders.
Epstein continued, "As part of this initiative, and as a result of receiving our debtor-in-possession financing facility, we will be able to conduct business-as-usual with customers and partners, and ensure the highest customer service is provided throughout the reorganization.
Once Kmart exits Chapter 11 and the debtor-in-possession facility is replaced by the exit financing, the retailer would be required to submit financial reports to the loan administrator, which is GE Capital.
Trinsic announced also that it has entered into a Secured Super-Priority Debtor-In-Possession Credit Agreement with Thermo Credit LLC.
The company also announced that it has entered into a commitment letter with certain of the DIP lenders to finance an amended and restated debtor-in-possession credit agreement in an aggregate principal amount of $90 million (the "Restated DIP").
JP MorganChase, Citigroup, CIT and GE Capital are among the current lenders for the debtor-in-possession financing.
The Company is in possession of its properties and assets and continues to manage its business as debtor-in-possession subject to the supervision of the Bankruptcy Code.
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, District of Minnesota, on December 8, 1998, and is now operating as a debtor-in-possession pursuant to Chapter 11.
announced today that it received Court approval for the $300 million Debtor-in-Possession (DIP) financing it arranged from Goldman Sachs, GE Capital and Barclays, as part of DURA's Chapter 11 filing, which encompasses the company's U.
NYSE: AEE), debtor-in-possession under chapter 11 of the United States Bankruptcy Code, a manufacturer and retailer of women's apparel, today announced that its net sales for the fiscal year ended October 29, 1994 (unaudited and subject to year-end audit adjustments) were $54,002,000, as compared to $60,835,000 for the prior fiscal year.
AMTROL also received interim approval to access and subsequently closed a $115 million debtor-in-possession (DIP) financing facility provided by Barclay's Capital.