With Chapter 11 Bankruptcy comes the potentially beneficial opportunity for a debtor to restructure though D.I.P. Loans
D.I.P. or Debtor in Possession financing are loans for companies who have filed for chapter 11 bankruptcy. While most traditional banks & lenders won’t lend money to companies in bankruptcy, we see as the perfect opportunity to help companies restructure their finances.
There are a number of situations where D.I.P. financing can help companies:
1. Cashflow – During this process, companies need to make sure they have enough cash to pay their ongoing bills.
2. Inventory – Companies may have orders for products with no ability cash to manufacture the products.
3. Repairs – Companies may have equipment & real estate that needs repairs to make operational.
4. Payoff existing debt – Some lenders want to be paid off so badly (they might even need the cash more than the company that filed for chapter 11) that they are willing to accept significant discounts just to walk away.
Debtor in Possession (D.I.P.) financing is a critical resource that helps to cover operating activities, such as capital improvements, marketing costs, and other daily expenses during Chapter 11. D.I.P. financing enables debtors to utilize accounts receivable, equipment capital, and real estate to restore profitability to their business or project value.
GFCIB can provide you and your company with fresh, liquid cash to invigorate your finances and steer you back on track. Call us today to discuss D.I.P. loans, and we will tailor-make the financial strategy that allows you to drive earnings forward while navigating the bankruptcy filing process.
D.I.P. financing is only one of several specialty financial services offered by GFCIB. Click here to view our full list of services and resources.