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debtor in possession

   Also found in: Dictionary/thesaurus, Medical, Financial, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.

debtor in possession n. in bankruptcy proceedings when a debtor has filed for the right to submit a plan for reorganization or refinancing under Chapter 11, and the debtor is allowed to continue to manage his/her/its business without an appointed trustee, that debtor is called a "debtor in possession." (See: bankruptcy)



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Valentine is operating as a debtor in possession since it filed for bankruptcy on June 6, 2005.
Titan Capital has just financed a Debtor in Possession bankruptcy loan to a religious institution in Borough Park.
In addition, the debtor in possession may be required to obtain the consent of the bankruptcy court to enter into new leases.
 
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