Rescue/DIP Financing
DIP Financing
  • A company filing Chapter 11 may reorganize as a viable company or sell their assets.  

  • DIP (debtor in possession) is a company that remains in operation during the Chapter 11 proceedings.

  • DIP financing are funds provided by lenders to allow the debtor to operate while in the Chapter 11 process. Loan or investors typically include banks, institutional lenders, hedge funds and investment funds.

  • All DIP financing requests must be approved by the Bankruptcy court.

  • Bankruptcy courts often give a first priority to the DIP financing source for this new capital.
If your company is experiencing financial distress, it’s important to consult an experienced turnaround specialist to determine all of your viable options. RJ Reuter can help you through the restructuring process outside of bankruptcy. 

If you determine that Chapter 11 bankruptcy is your best option, DIP financing may provide a strong opportunity to help turn your company around. 

RJ Reuter can source the best DIP financing options for your unique situation.
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