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.

References in periodicals archive ?

During that time current management will continue to lead operations supported by debtor-in-possession financing provided by CoBank.

Deal snapshot: OREGON POTATO COMPANY TO ACQUIRE ALL ASSETS OF NORPAC FOODS

The lenders will also supply debtor-in-possession financing to keep the company afloat.

Jack Cooper Makes It Official: Chapter 11 And A Restructuring

A source told (https://www.cnbc.com/2019/07/25/barneys-raises-financing-for-potentially-imminent-bankruptcy.html) CNBC that Barneys has begun the process of raising debtor-in-possession financing, but the amount of the financing has yet to be determined.

Barneys Could File Bankruptcy As Early As Next Week

The Bankruptcy Court granted the company interim approval to access up to $47M of up to $94.5M in debtor-in-possession financing. The DIP financing, combined with cash generated from the company's ongoing operations, will be used to, among other things, support the business during the court-supervised restructuring process.

FTD Companies receives court approval of motions related to Chapter 11 petitions

previously provided debtor-in-possession financing to the Xtera debtors in connection with the chapter 11 case.

H.I.G. Capital Acquires UK Fibre Optic Solutions Firm Xtera Communications

Milberg Factors is a factoring and commercial finance company in the United States, providing clients with factoring services, working capital financing, accounts receivable management, acquisition and debtor-in-possession financing. Milberg also manages loans and provides collateral management services to major commercial banks.

Milberg Factors names Daniel R. Milberg, President

The threat apparently caused a federal bankruptcy judge to back off some of the conditions he had originally put in the order approving debtor-in-possession financing, which is intended to help the Merrimack company emerge from Chapter 11 reorganization filed in October, after GTAT's disastrous deal with Apple Inc.

GTAT receives $95 million loan

The debtor-in-possession financing will be provided by Horizon Technology Finance Corporation and serve as the stalking horse at the auction with a bid of USD10m and a pledge not to compete with firms bidding higher.

Xtreme Power receives bankruptcy court approval to cancel February deadline for bids

American Suzuki Motor Corporation (TYO: 7269), a subsidiary of Japan-based automaker, Suzuki Motor Corporation, is planning to use part of the USD100m debtor-in-possession financing that it has received to fund its chapter 11 filing, to purchase inventory from Japan.

-CORRECTION: Suzuki to use USD50m financing to purchase inventory

Lane to approve its request for a $150 million debtor-in-possession financing package from Silver Point Finance.

Arcapita asks for Shari'ah-compliant bankruptcy finance

Pinnacle Airlines Debtor-In-Possession Financing Approved.

Company Watch - Pinnacle Airlines

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