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Restructuring, Insolvency & Bankruptcy

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Debtor-in-Possession Lenders

Chapter 11 debtors often require access to working capital post petition 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 creditors and the court and require bankruptcy court approval.

We assist and represent lenders in all aspects of the post petition loan-making process: 

  • Evaluating the liens and priority needed to protect the lender 
  • Negotiating and preparing transactional documents and court filings 
  • 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: 

  • Post petition workout agreements 
  • Loan modification documentation 
  • Relief from the automatic stay proceedings 
  • Sale proceedings involving the lender’s post petition collateral 
  • Plan negotiation and confirmation