Debtor-in-possession financing

From Wikipedia, the free encyclopedia
Jump to: navigation, search

Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this debt is considered senior to all other debt, equity, and any other securities issued by a company. It gives a troubled company a new start, albeit under strict conditions.

See also[edit]