What is DIP financing?
DIP financing, or debtor-in-possession financing, is a funding option available for companies facing financial difficulties that are contemplating bankruptcy or have already filed for protection under Chapter 11.
This financing is ideally suited for companies that have not yet filed for Chapter 11; however, if your company has already initiated the Chapter 11 process, we may still be able to assist you.
To Qualify for DIP Financing
To qualify for DIP financing, the company must present a viable reorganization plan aimed at recovery. It is important to note that DIP financing is not available for companies that are looking to liquidate or that are under Chapter 7 bankruptcy.
Provides Capital to Help a Company Reorganize
Debtor-in-possession financing can provide the necessary capital to help a company reorganize and sustain its operations during the bankruptcy proceedings. Typically, DIP financing takes precedence over existing debts, equity, and other claims from creditors.
The term "debtor in possession" indicates that the company’s current management and board of directors retain control of the company following its Chapter 11 bankruptcy filing.
More Information
If your company is considering Chapter 11 or is currently undergoing the Chapter 11 process, please do not hesitate to reach out to us. You will be collaborating with an experienced team that can assist in establishing a plan, preparing for Chapter 11, and facilitating the bankruptcy filing.
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