DIP financing is offered from Clopton Capital as a way for owners and operators of commercial real estate assets that are under financial stress to find a pathway out of the trouble they are in. We are able to arrange financing for real estate entities and companies that are currently in chapter 11 bankruptcy where the additional financing would be beneficial to all parties involved in the proceedings. We have longstanding relationships with capital sources that offer DIP financing for commercial real estate assets that are under chapter 11 bankruptcy that need additional financing to be able to successfully emerge from the restructuring and obtain exit financing.
DIP Financing typical terms:
- Amounts from $1 million up to $40 million
- companies must currently be in chapter 11 bankruptcy reorganization
- Any commercial real estate assets can be used as collateral so long as there is sufficient value
- Use of funds can vary, however must be approved by bankruptcy court
To discuss any DIP financing scenarios, fill out the contact us form or call us directly at 866-647-1650
Debtor In Possession Financing
DIP Financing or Debter in Possession Financing is a form of financing, typically debt, that is provided in to an entity that is in financial distress during restructuring under Chapter 11 bankruptcy. During the bankruptcy reorganization, the company retains control of its assets (in possession) and the new financing is used to help continue operations, increasing the ability of the debter to repay its creditors. During bankruptcy proceedings in which a bankrupt company is able to obtain new financing from a DIP lender, the new DIP lender will receive priory of repayment before all other liens. As such any existing lender would have to consent to the new financing prior to it being put in place.