Debtor In Possession (DIP) Financing – Chapter 11 Bankruptcy Loans

NEW YORK - Dec. 6, 2023 - PRLog -- Debtor In Possession (DIP) Financing – Chapter 11 Bankruptcy Loans

Winston Rowe & Associates, a private capital firm provides debtor in possession (DIP) financing solutions on a national basis with applications for joint venture and private capital. They consider transactions starting at $500,000. to $500,000,000.

How Debtor in Possession (DIP) Financing Works:

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, to walk into corporate bankruptcy court with this pre packaged settlement.

Under Chapter 11 bankruptcy, a business files for protection from creditors while it reorganizes itself. Instead of granting the creditors' claims from liens and security interests in the business assets and allowing them to take possession, the bankruptcy court allows the business to retain ownership and control of specific assets.

During that time, the business must prepare a reorganization plan that proposes a method, an amount, and a time frame by which it will pay its creditors.

Prospective clients with questions concerning their debtor in possession (DIP) financing options can contact Winston Rowe & Associates at 248-246-2243 or visit them online at https://www.winstonrowe.com