GE offers Debtor-In-Possession financing. In most cases, DIP financing is considered attractive because it is done only under order of the Bankruptcy Court, which is empowered by the
Bankruptcy Code to afford the lender a lien on property of the bankruptcy estate and/or a priority position. An asset-based lender providing Debtor-In-Possession (DIP) financing following
the filing of either a voluntary or involuntary bankruptcy proceeding utilizes the same fundamental asset valuation approach to provide the loan as it would utilize for a company not in bankruptcy.
The availability of DIP financing may depend on the perceived viability of the company during the proceeding and on its ability to successfully complete a Plan of Reorganization (POR).
Potential Applications:
• Bankruptcy Financing: Voluntary or Involuntary Bankruptcy
