The Nuts & Bolts of DIP Financing

Webinar Overview

Show me the money! Debtors in Chapter 11 cases cannot survive without money to continue operations, pay vendors and professionals, and work to restructure debt and/or sell assets. Where do those necessary funds come from? There are really only two sources – cash the debtor has or can generate (in either case, generally the collateral of the secured lender) or new money coming into the estate in the form of a post-petition debtor-in-possession (DIP) loan. What the debtor is permitted or not permitted to do can seal the fate of a case from the outset. This webinar sheds light on the intricacies involved in DIP financing.

Learning Objectives:

• Understand the critical role of financing in Chapter 11 cases:
  • Recognize why access to funding is essential for a debtor’s survival during the restructuring process
  • Identify the key expenses that require financing, such as operations, vendor payments, and professional fees
• Learn the sources of funding for Chapter 11 debtors:
  • Explore the role of a debtor’s existing cash and cash-generating abilities as potential sources of funding
  • Understand the importance of post-petition debtor-in-possession (DIP) loans as a key source of new funding
• Analyze the mechanics of DIP financing:
  • Examine how DIP financing works, including the terms and conditions typically associated with such loans
  • Understand the negotiation process between debtors, lenders, and other stakeholders regarding DIP financing agreements
• Explore the legal framework governing DIP financing:
  • Review the requirements and limitations imposed by the Bankruptcy Code on DIP financing
  • Understand how courts evaluate and approve DIP financing arrangements
• Evaluate the impact of financing decisions on a Chapter 11 case:
  • Recognize how the availability or lack of financing can influence the outcome of a bankruptcy case
  • Understand the strategic implications of DIP financing for debtors and creditors
• Gain practical insights into the DIP financing process:
  • Learn how DIP financing is structured and implemented in real-world scenarios
  • Analyze the challenges and risks involved in securing and utilizing DIP financing

Other Webinars in this Series

• The Nuts & Bolts of a First Day Hearing (Premiered on April 30, 2025)
• The Nuts & Bolts of a Lift Stay Motion (Premiered on February 26, 2025)
• The Nuts & Bolts of a Chapter 11 Plan (Premiered on January 29, 2025)