Structuring A Debtor in Possession Turn Around Winston Rowe & Associates

Dec. 1, 2012 - PRLog -- Debtor in Possession

Winston Rowe & Associates, a national commercial real estate advisory and finance firm has extensive experience in arranging the best debtor in possession (DIP) financing for companies operating while in bankruptcy.

Winston Rowe & Associates has some of the best service in the business.

Prospective clients can always speak to a principle at 248-246-2243 or email them at processing@winstonrowe.com or check them out online at http://www.winstonrowe.com

National Debtor in Possession (DIP) Solutions:

Bankruptcy Financing: Voluntary or Involuntary Bankruptcy

Plan of Reorganization

Restructuring

Turnaround Financing

Debtor in Possession Methodology:

DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims. DIP financing is considered attractive because it is done only under order of the Bankruptcy Court, which is empowered by the Bankruptcy Code.

Debtor-in-Possession financing can also provide corporate bankruptcy financing to engage in a prepackaged business bankruptcy where the asset based lender providing DIP financing supplies the funds to work out a settlement with creditors up front, in order to walk into corporate bankruptcy court with this prepackaged settlement.

Asset Based Debtor in Possession (DIP) Solutions:

Asset based lending sources provide Debtor-In-Possession financing following the filing of either a voluntary or involuntary corporate bankruptcy proceeding utilizes the same fundamental asset valuation approach to provide the loan as it would utilize for a company not in business bankruptcy.

DIP loans are often collateral-driven and the inability to monitor cash closely can create exposure quickly. Asset-based lending sources have the best capability to monitor that collateral. This monitoring capability gives turnaround consultants real-time collateral and financial information.

The asset-based lending community is also the best at valuing assets. It is well versed in the ins and outs of the bankruptcy process and it offers the financially troubled company a friendly environment for restructuring.

Simply put, when a company goes into a DIP, asset-based lending sources have the credentials necessary to get the deal done.

The best way to improve the chances of a successful exit from bankruptcy is to have an asset-based lender in place at the earliest sign of financial stress.

The Plan of Reorganization (POR):

The availability of DIP financing may depend on the perceived viability of the company during the proceeding and on its ability to successfully complete a Plan of Reorganization (POR).

The Plan of Reorganization must specify how the debtor intends to pay the creditors and Debtor-in-Possession financing is a means toward that end.

Exiting A Debtor in Possession (DIP:

DIP loans are often collateral-driven and the inability to monitor cash closely can create exposure quickly. Asset-based lending sources have the best capability to monitor that collateral. This monitoring capability gives turnaround consultants real-time collateral and financial information.

The asset-based lending community is also the best at valuing assets. It is well versed in the ins and outs of the bankruptcy process and it offers the financially troubled company a friendly environment for restructuring.

Simply put, when a company goes into a DIP, asset-based lending sources have the credentials necessary to get the deal done. The best way to improve the chances of a successful exit from bankruptcy is to have an asset-based lender in place at the earliest sign of financial stress.

It is a good business practice to establish a relationship with an asset- based lender well before a company reaches a point where its cash flow and capital structure have become unpredictable. If or when a company then faces distress, the existing asset-based lender will be the best ally.

Why Work With Winston Rowe & Associates:

Winston Rowe & Associates pride themselves in their private banking approach, Midwestern values and deep understanding of the Debtor in Possession (DIP) as it relates to the commercial real estate markets.

Winston Rowe & Associates has Debtor in Possession CRE finance programs in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming