Debtor-in-Possession Financing

Funding a Chapter 11 Case

Henry Kevane and John Lucas are among the coauthors of the American Bankruptcy Institute’s new book on financing the chapter 11 debtor. Mr. Kevane wrote “Anatomy of a DIP Financing Order” and Mr. Lucas contributed “Approval of the DIP Financing Order.”

From the ABI website: “The Bankruptcy Code provides a variety of mechanisms designed to facilitate a chapter 11 debtor’s access to new credit to fund its reorganization or sale efforts. DIP financing, or credit extended to a chapter 11 debtor, offers unique benefits—and challenges—for those that take on the risk of providing secured credit to troubled businesses. Debtor-in-Possession Financing: Funding a Chapter 11 Case details the real-world application of this part of the Code, particularly § 364, and explains common lending practices, including the critical financial analyses that lenders should complete before entering into a DIP agreement. Concluding with a detailed analysis of a ‘Model DIP Financing Order,’ this manual provides practitioners, lenders and debtors with an understanding of the history behind DIP financing and a practical explanation of its often-complex mechanics.”