Tag Archives: DIP
The Basics of DIP Financing During a Chapter 11
In a Chapter 11 bankruptcy, the person or corporation under bankruptcy protection is usually designated a debtor-in-possession (DIP), which means they can continue to manage the business freely though subject to obtaining court approval for major decisions. But a successful reorganization of the business requires infusion of additional capital. DIP financing is a remedy for […]
Your Responsibilities as a Debtor in Possession During Chapter 11
The role of the debtor in possession (DIP) is essential to the success of a Chapter 11 bankruptcy. In most cases, the debtor’s business continues to be operated by its owner, who acts as the proxy of the bankruptcy trustee. However, the DIP also takes on a fiduciary duty to act in the best interests […]
