Ocean Pacific Capital has been in the commercial real estate finance business since 1977. We have extensive experience in arranging the best debtor in posession (DIP) financing for companies operating while in bankruptcy.
DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims. DIP financing is considered attractive because it is done only under order of the Bankruptcy Court, which is empowered by the Bankruptcy Code. Debtor-in-Possession financing can also provide corporate bankruptcy financing to engage in a prepackaged business bankruptcy where the asset based lender providing DIP financing supplies the funds to work out a settlement with creditors up front, in order to walk into corporate bankruptcy court with this prepacked settlement.
Asset based lending sources provide Debtor-In-Possession financing following the filing of either a voluntary or involuntary corporate bankruptcy proceeding utilizes the same fundamental asset valuation approach to provide the loan as it would utilize for a company not in business 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). The Plan of Reorganization must specify how the debtor intends to pay the creditors and Debtor-in-Possession financing is a means toward that end.
- Bankruptcy Financing: Voluntary or Involuntary Bankruptcy
- Plan of Reorganization
- Turnaround Financing
DIP loans are often collateral-driven and the inability to monitor cash closely can create exposure quickly. Asset-based lending sources have the best capability to monitor that collateral. This monitoring capability gives turnaround consultants real-time collateral and financial information.
The asset-based lending community is also the best at valuing assets. It is well versed in the ins and outs of the bankruptcy process and it offers the financially troubled company a friendly environment for restructuring. Simply put, when a company goes into a DIP, asset-based lending sources have the credentials necessary to get the deal done. The best way to improve the chances of a successful exit from bankruptcy is to have an asset-based lender in place at the earliest sign of financial stress.
It is a good business practice to establish a relationship with an asset- based lender well before a company reaches a point where its cash flow and capital structure have become unpredictable. If or when a company then faces distress, the existing asset-based lender will be the best ally.
If you need the best DIP financing, call our Commercial Loan Department at 1-800-595-1474 today for a free consultation. We pride ourselves in personalized customer care so a friendly and experienced loan officer specializing in DIP financing will be at your side throughout every step of the process.
your financing needs,
we will tailor a loan that's right for you.
Many oil and gas companies face serious decisions regarding their short and mid-term plans in Iraq, according to Rystad Energy.
Wall Street Journal
WSJ.com: US Business
CDC Removes Advice to Refrain From Vaping The U.S. Centers for Disease Control and Prevention has moved away from a broad recommendation that people consider refraining from vaping altogether during the investigation into the outbreak of lung illnesses linked to the practice.
Boeing Encounters New MAX Woes The plane maker has found a software problem that prevents the 737 MAX?s computers from powering up properly prior to flight, which could complicate the aircraft?s return to service.
Best Buy Opens Probe Into CEO's Personal Conduct The board of Best Buy is investigating allegations that Chief Executive Corie Barry had an inappropriate romantic relationship with a fellow executive, who has since left the electronics retailer.