Debtor-In-Possession Financing - DIP Financing

What does it Mean? Financing arranged by a company while under the Chapter 11 bankruptcy process. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims.
Investopedia Says... Chapter 11 gives the debtor a fresh start, which is, however, subject to the debtor's fulfillment of its obligations under its plan of reorganization.

Terms Related Links

Bankruptcy
Chapter 11
Debt
Debtor
Debtor in Possession

Terms Related Links
An Overview Of Corporate Bankruptcy - As soon as you invest in a company, you face this risk. Find out what it means.

GE Commercial Finance - The only corporate debt restructuring expert part of a Fortune 5 industrial giant.




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