debtor in possession

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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)

References in periodicals archive ?
A bankruptcy trustee or debtor-in-possession must satisfy all of the following requirements to recover a preference:
The company has arranged for debtor-in-possession financing with an initial commitment of $75 million, from a consortium of banks comprised of CIBC, Citicorp, Credit Suisse First Boston, The Bank of New York and The Chase Manhattan Bank.
Bankruptcy Court for the District of Delaware gave final approval to Louisville, Kentucky-based Vencor's $100 million debtor-in-possession financing.
NEW YORK-River Oaks Furniture Inc., in bankruptcy proceedings since March, received bankruptcy court approval of $32.9 million in debtor-in-possession financing.
Gropper of the US Bankruptcy Court for the Southern District of New York has approved initial availability of USD650m in interim Debtor-in-Possession (DIP) financing by Citigroup.
According to the newspaper, the board also has to approve debtor-in-possession financing.
* Contrary to popular myth, there is no guarantee that a creditor selling on open account terms to a debtor-in-possession ("DIP") in a Chapter 11 bankruptcy will be paid in full.
More often than not, they are willing to give full consideration to the assets a borrower brings to the table, overlook past credit problems and consider potential foreclosure or debtor-in-possession financing.
Bankruptcy Court in Delaware to approve an agreement for debtor-in-possession (DIP) financing with a bank group led by Morgan Guaranty Trust company of New York.
The new facility consists of an up to 18 month $250 million debtor-in-possession (DIP) revolving facility and an up to three year $250 million post-bankruptcy revolving credit facility.
M2 EQUITYBITES-February 21, 2011-GE Capital agents USD505m debtor-in-possession financing to Borders(C)2011 M2 COMMUNICATIONS http://www.m2.com
According to Reuters, the amendment would be the 13th to the company's debtor-in-possession financing since the US carrier entered bankruptcy in December 2002.