Debtor-in-possession financing


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Debtor-in-possession financing

New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims.

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.
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M2 EQUITYBITES-February 21, 2011-GE Capital agents USD505m debtor-in-possession financing to Borders(C)2011 M2 COMMUNICATIONS http://www.
GE Capital agents USD505m debtor-in-possession financing to Borders
A day later the court was allowed it an interim loan of $206 million of the $600 million in debtor-in-possession financing.
AbitibiBowater Gets Approval for $600 Million to Finance Operations During Reorg
9bn debtor-in-possession financing will reportedly save the airline USD30m annually.
Delta receives approval for lower interest rate from debtors-in-possession
has agreed with its lenders to amend (the "Amendment") the company's debtor-in-possession financing (the "DIP Financing") to extend the maturity until Sept.
Vencor amends DIP financing, extends maturity to September
The availability of trade credit may be especially critical where the company lacks a debtor-in-possession financing facility or the company's current lending facility is inadequate to satisfy all of its cash needs.
Vendor liens and other credit enhancements: an inducement to extend credit to troubled companies
UAL Corp, the parent company of US airline United Airlines, has received approval to amend and extend its debtor-in-possession financing to 30 September 2005.
UAL receives approval for amending and extending financing
Bankruptcy Court for the District of Delaware gave final approval to Louisville, Kentucky-based Vencor's $100 million debtor-in-possession financing.
Court approves Vencor's $100M DIP financing
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