Debtor-In-Possession Financing - DIP Financing

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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • financing — obtaining money resources. Businesses usually have to obtain finance at some time, either to go into business or expand operations. Glossary of Business Terms * * * financing fi‧nan‧cing [ˈfaɪnænsɪŋ ǁ fˈnænsɪŋ] noun [uncountable] BANKING the… …   Financial and business terms

  • 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. Sometimes referred to as turnaround financing or debtor in possession… …   Investment dictionary

  • title financing — a form of lending over goods One of the defects of the law governing the creation of security rights over goods and chattels is the requirement that for the security to be validly constituted, either the cumbersome registration procedures must be …   Law dictionary

  • factorage financing — A method of financing wherein the security arrangement leaves the security more or less in possession of, and subject to sale or handling by, the debtor, as part of a going business; usually substitutions of security from time to time are… …   Ballentine's law dictionary

  • General Motors Chapter 11 reorganization — The General Motors Chapter 11 sale of the assets of automobile manufacturer General Motors and some of its subsidiaries was implemented through section 363 of Chapter 11, Title 11, United States Code in the United States Bankruptcy Court for the… …   Wikipedia

  • Chrysler Chapter 11 reorganization — See also: History of Chrysler, Automotive industry crisis of 2008 2009, Chrysler, and Cerberus Capital Management Chrysler LLC and twenty four of its affiliated subsidiaries filed a consolidated petition for bankruptcy on April 30, 2009,… …   Wikipedia

  • History of Chrysler — 1936 Chrysler Airflow Series C 9 This article is about the History of Chrysler, an American automobile manufacturer. Contents 1 History …   Wikipedia

  • United Airlines — For other uses, see United Airlines (disambiguation). This article is about the airline. For information about the airline s parent company, see United Continental Holdings. United Airlines …   Wikipedia

  • Liquidation — Winding up redirects here. For other uses, see Wind up (disambiguation). Not to be confused with liquification, a concept in physics. In law, liquidation is the process by which a company (or part of a company) is brought to an end, and the… …   Wikipedia

  • Jim Balsillie — Born James Laurence Balsillie February 3, 1961 (1961 02 03) (age 50) Seaforth, Ontario, Canada …   Wikipedia

  • Bailout — For other uses of the term, see Bailout (disambiguation). In economics, a bailout is an act of loaning or giving capital to an entity (a company, a country, or an individual) that is in danger of failing, in an attempt to save it from bankruptcy …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.