Debtor in Possession Financing: A Tool for Companies in Chapter 11 Reorganization

Posted by Chris Curtin on Nov 20, 2017 in DIP Bankruptcy Financing | Comments Off on Debtor in Possession Financing: A Tool for Companies in Chapter 11 Reorganization |

Debtor in Possession Financing: A Tool for Companies in Chapter 11 Reorganization

What is DIP Financing or Debtor in Possession Financing? A debtor in possession financing or DIP financing provides funding for a business. DIP Financing will allow the business time to reorganize its business affairs under the umbrella of protection offered by US bankruptcy statues. It is only available to companies once they have filed for protection under the bankruptcy laws. The first step then is for a business owner to determine whether to seek shelter under these provisions. If so, then ownership will need to weigh alternatives...

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