Post-Petition Financing

Post-petition financing refers to funds provided to a company after it files for bankruptcy protection, allowing it to continue operating during the bankruptcy process. This financing helps pay for essential expenses like payroll, suppliers, and operating costs, which are critical for maintaining the business’s value and increasing the likelihood of a successful reorganization or sale. Typically, the company’s existing creditors or new lenders supply this funding, and it is often prioritized over other debts through court approval, ensuring the company can stabilize and work toward a viable future.