Debtor in Possession Lenders
Chapter 11 debtors often require access to working capital post-petition in order to fund their continuing operations and to formulate and confirm a Chapter 11 plan of reorganization. Debtor-in-possession (DIP) loans are subject to close scrutiny by the creditors and the court and require bankruptcy court approval.
We assist and represent lenders in all aspects of the post-petition loan-making process, including negotiating and preparing transactional and financing documents, and helping the debtor obtain court approval for the loan.
We also represent DIP lenders in circumstances where the debtor has defaulted on the post-petition loan. We assist with:
- Negotiation and preparation of post-petition workout agreements
- Loan modification documentation
- Relief from stay proceedings
- Sale proceedings involving the lender’s post-petition collateral
- Plan negotiation and confirmation