DIP Lenders

DIP lenders, or Debtor-in-Possession lenders, provide financing to companies that are undergoing bankruptcy or restructuring. When a business files for Chapter 11 bankruptcy, it retains control of its assets and operations but needs funds to keep running. DIP lenders offer loans to ensure the company can pay employees, suppliers, and continue operations during this process. These loans have priority over existing debt, making them less risky for lenders, and can help the business stabilize and eventually recover. The goal is to support the company through its financial troubles and enable it to emerge successfully.