What is DIP Financing?
DIP Financing (Debtor in possession) is a funding option for companies facing financial difficulties that are considering bankruptcy or have filed for protection under Chapter 11.
Ideally, DIP financing is for a company that has not yet filed for Chapter 11, however, if your company has already filed for Chapter 11 bankruptcy, we may still be able to help.
The company must have a viable reorganization plan to turn the company around. However, DIP financing is not an option for companies looking to liquidate or under Chapter 7 bankruptcy.
Debtor-in-possession financing can enable a company to reorganize by accessing capital to support its operations while in bankruptcy. DIP financing usually has priority over existing debt, equity, and other claims from their creditors.
The term ‘Debtor in Possession’ means that the company's current management and board of directors remain ‘in possession’ of the company after its filing under Chapter 11 bankruptcy.
If your company is considering Chapter 11 (or is presently under Chapter 11), give us a call. You’ll be working with an experienced team that can help companies establish a plan and prepare for Chapter 11 filing and file directly behind the bankruptcy filing.
For more information, please EMAIL US a brief description of your situation and funding requirements.
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