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Bankruptcy Financing

Debtor In Possession (DIP Loan)

Pacific Sun Capital provides Debtor in Possession financing (DIP financing) which is a special form of financing granted to companies in financial trouble. Typically these companies are in a Chapter 11 bankruptcy. The unique feature of a DIP loan is that the bankruptcy court usually grants a super priority status to the new loan. This means that the new loan gets to jump in front of any mezzanine financing and any senior mortgages in the debt stack. It is important to understand that DIP financing is used to provide new operating capital and is not intended to pay off any current debt or obligation associated with the sponsor or entity.

PacSun Capital has substantive experience in these types of projects and can provide Debtor in Possession (DIP) financing. Please contact us if you would like more information regarding Debtor in Possession financing and Bankruptcy Loans.