Debtor in Possession Financing, also known as DIP Financing, is available for a variety of needs. So, what is DIP Financing? Debtor in Possession Financing is financing that is available for businesses that are in bankruptcy or who have been through a debt restructuring.
When a business goes through bankruptcy and all of its debt is restructured or wiped out, in some cases DIP financing can be used to recapitalize the business. In some cases all secondary debt is wiped out by a bankruptcy or restructuring and the first lien holder is willing to extremely discount the balance owed.
In these situations lenders offer Debtor in Possession financing to the business because they believe the business has a chance of success because a majority of the past debt has been removed. This removal of past debt decreases risk to the new lender making the decision to approve the loan much easier.
Dividend America Commercial Lending has DIP financing for all types of business. Any business in bankruptcy or in need to Debtor in Possession financing to take out a short-pay on a first lien note can receive DIP financing very quickly. To find out more about DIP financing call Michael Gross, President of Dividend America at 404-819-4511 or email at .
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