Beware of Debtor-in-Possession Financing: The Risks to Existing Lenders and Vendor-Take-Back Mortgagees

​Priority is a major consideration for any lender when evaluating risks associated with financing. This becomes all the more important when an insolvent debtor seeks to restructure and access debtor-in-possession (“DIP”) financing (also referred to as “interim financing”). DIP financing is financing obtained by an insolvent debtor when restructuring their business. It is unique becauseContinue reading “Beware of Debtor-in-Possession Financing: The Risks to Existing Lenders and Vendor-Take-Back Mortgagees”

What to do when the bank comes knocking

The advantages and risks of entering into a forbearance agreement with your lender COVID-19 is creating financing difficulties for all businesses.  It is now harder to pay lenders and suppliers.  What can you do about these financial difficulties?  Is bankruptcy the only option or is there something less disruptive than a formal restructuring that canContinue reading “What to do when the bank comes knocking”