Debtor-In-Possession Financing - DIP Financing

What Does Debtor-In-Possession Financing - DIP Financing 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 explains Debtor-In-Possession Financing - DIP Financing
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.

Related Terms

Bankruptcy
Chapter 11
Debt
Debtor
Debtor in Possession
More Related Terms

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