What is DEBTOR-IN-POSSESSION (DIP) FINANCING?

Funding arranged for a company in BANKRUPTCY that is filing a REORGANIZATION plan; the bank group providing DIP financing generally assumes some level of control and/or COLLATERAL in order to protect its new financing commitment.

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Related Legal Terms
DEBTOR-IN-POSSESSION (DIP), DEBTOR IN POSSESSION, PRELOSS FINANCING, NON-RECOURSE FINANCING, POST-LOSS FINANCING, PROJECT FINANCING, MEZZANINE FINANCING, DEBT FINANCING, DEBTOR’S SUMMONS, CONDUIT FINANCING


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