Search Results for: "dip financing"
Dealing with Corporate Distress 15: Digging into DIP Financing & Cash Collateral Motions in Bankruptcy
Will lenders loan to a company in bankruptcy? In this installment, uncover the many intricacies of DIP financing & cash collateral motions in bankruptcy.
Dealing With Distress for Fun & Profit – Installment #17 – Overview of DIP Financing and Cash Collateral Motions
There is a seeming irony here in that a company that files for bankruptcy often does not have the cash to do so. That’s where DIP financing comes in.
DIP Loan/ DIP Financing
Also called “DIP financing,” a DIP loan is a line of credit or other credit provided to a DIP during a bankruptcy case, based upon meticulously-drafted DIP financing agreements that are reviewed by the bankruptcy court (and often the U.S. Trustee and any Committee) for, among other things, compliance with section 364 of the Bankruptcy […]
Roll-Up Financing
A “roll-up” refers to a debtor-in-possession (or DIP) financing facility that is provided by the debtor’s prepetition (pre-bankruptcy) lenders and effectively pays off (or “rolls-up”) the prepetition secured debt. The roll-up can take place in a single stage or the debtor, as postpetition funding is obtained, applies an equivalent amount of proceeds first to the repayment of the prepetition […]
Best Practices for UCC-3 Terminations and Continuations
Careless mistakes in UCC-3 terminations and continuations can lead to costly litigation with secured parties. Learn best practices for filing and recording.
6 Common Mistakes in Drafting Collateral Descriptions
Whether there is change in collateral or a serial number is listed incorrectly, errors in collateral descriptions can lead to expensive disputes.
90 Second Lesson: What is a “Professional Fee Carve-Out” in Chapter 11?
It’s typical for secured lenders in a chapter 11 case to set aside a portion of the proceeds of its collateral to pay professional fees. Understand what you may need to know about carve-out fees.
Dealing with Corporate Distress 17: Focus on Assuming & Rejecting Executory Contracts & Unexpired Leases in Bankruptcy
Legal framework governing assumption, assignment, and rejection of executory contracts and unexpired leases in bankruptcy can be complicated.
Dealing with Corporate Distress 16: Overview of Bankruptcy Code § 365
In this installment, get an overview of Section 365 and understand how executory contracts can keep distressed businesses afloat.
Dealing with Corporate Distress 14: The Secured Creditor’s Perspective About its Debtors
Let’s take a look at bankruptcy from the secured creditor’s perspective (they play a large role in a distressed business situation). Read about what a secured creditor should know when a business files for bankruptcy.