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DIP financing/ Conditions for debtors 

Platinum financial trust offers you the ultimate alternative of salvaging your property/business by extending debtor in possession financing or DIP, which is normally availed by companies undergoing the chapter 11 bankruptcy procedures.  

Debtor in possession is a business entity that has filed a bankruptcy petition, but continues to run the business and continues to own the property on which a creditor has a lien. When the survival of the company and the probability of layoffs stare at the business owners, Platinum financial trust offers you the best possible option of DIP financing. Remember, Chapter 11 offers a fresh lease of life to the debtors, provided they fulfill the obligations in the plan of revival; and it is the DIP financing that ensures the requisite funds needed to get going with the revival package. 

Chapter 11 bankruptcy is a difficult and tedious process that can be very difficult to maneuver through. One way out is to avail the bankruptcy financing option of DIP, which offers an entity a fair chance of making a comeback. However, getting DIP financing is easier said than done. Typically banks do not extend credit facilities to bankrupt companies and the next available option is factoring, which is fast gaining popularity as an ideal DIP financing solution. DIP financing at Platinum financial trust is commonplace, and expedient.  

Platinum financial trust offers DIP financing on sufficient, collateralized security and priority claims. The lender should make sure that all the asset sale proceeds go into the DIP to bring down the loan and only after it is fully repaid, that the lenders can implement remedies. 

DIP financing loans are typically sized larger than the financial requirements of the debtor, enabling the debtor to cover any unexpected expenses. Platinum financial trust provides advances for the expenses after which our external or internal experts would carry out further review of the debtor’s invested capital’s security, and the current projections of cash flow. Once all these formalities are completed, Platinum financial trust releases the financing. 

We at Platinum financial trust ensure that the DIP loans are approved without any delay to instill confidence in the vendors and customers of the debtors. Companies availing DIP financing often emerge from the Chapter 11 process in an expedient manner. At Platinum financial, we ensure adequate cash flow to meet the operating expenses during the reorganization process.  

Court orders approving DIP financings are rarely reversed. We have an expert legal team and experienced staff members who will assist with all aspects of the transaction.  
For additional information please contact our team at financing@platinumfinancialtrust.com or fill in the form below.

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