Bankruptcy Financing
Definition of 'Bankruptcy Financing'Financing arranged by a company while under the chapter 11 bankruptcy process. Clearly, such financing is extremely high risk and is done at a relatively high interest rate. |
|
Investopedia explains 'Bankruptcy Financing'Sometimes referred to as "turnaround financing" or "debtor in possession financing". It can be very profitable to lend to companies that need money this badly, but at the same time, a lender runs a high risk of the creditor defaulting. |
Related Definitions
Articles Of Interest
-
An Overview Of Corporate Bankruptcy
If a company files for bankruptcy, stockholders have the most to lose. Find out why. -
What are the differences between chapter 7 and chapter 11 bankruptcy?
Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to ... -
Stop Keeping Up With The Joneses - They're Broke
Conspicuous consumption could be robbing you of future wealth. -
Bloated Budget? How To Trim The Fat
Blood, sweat and tears should belong in the gym, but your money deserves some training time too. -
Shuffle Away Your Debt With Balance Transfers
This option can save you big bucks, but only if you watch out for rates and fees. -
Outfox The Debt Collector's Hounds
Dealing with a collection agency is scary if you don't know your rights. We help you take back the power. -
A Guide To Debt Settlement
Find out how you can negotiate your way to a lower debt load by paying up front. -
5 Worst Money Mistakes You Can Make In College
Watch out for these costly mistakes while in school. -
What's More Important: Getting Out Of Debt Or Investing?
To repay debt or invest, that is the question. These two important financial goals battle head-to-head to determine which is really more important. -
How To Invest When You're Deep In Debt
Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be.
Free Annual Reports