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”
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