debtor in possession

(redirected from 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 ?
The Richmond-headquartered company's unsecured creditors first objected to the proposed debtor-in-possession funding, which will be given by a syndicate of lenders.
M2 EQUITYBITES-February 21, 2011-GE Capital agents USD505m debtor-in-possession financing to Borders(C)2011 M2 COMMUNICATIONS http://www.
The debtor is the bankrupt person or entity, and the creditors are those to whom the debtor owes money; Depending on a number of factors, the debtor in Chapter 11 may act as a debtor-in-possession and continue to run the business after the bankruptcy is filed, or a trustee may be appointed to oversee the entity through the bankruptcy proceedings.
A day later the court was allowed it an interim loan of $206 million of the $600 million in debtor-in-possession financing.
To help support its business during the Chapter 11 proceedings, SMART Papers has obtained debtor-in-possession (DIP) financing from Wachovia Capital Finance, Ft.
9bn debtor-in-possession financing will reportedly save the airline USD30m annually.
The company already received from its lenders a commitment of up to $15 million in debtor-in-possession financing, which, when combined with revenue from operations, is expected to support the company through the Chapter 11 process.
If the company records are in adequate order, the bankruptcy trustee or debtor-in-possession can make this filing without omitting any creditors; these creditors are then notified that the company has filed bankruptcy.
In order to protect a pre-petition settlement agreement from a post-petition preferential attack, the parties to the settlement agreement may structure the agreement in such a way as would make it substantially difficult if not impossible, for a trustee or debtor-in-possession to recover the prepetition transfer of property.
The $2 billion facility replaces Kmart's current debtor-in-possession facility on the date the retailer emerges from Chapter 11.
A trustee is not automatically appointed, although a creditor may seek court authorization to displace debtor-in-possession management with a trustee for cause, including fraud, dishonesty, incompetence, or gross mismanagement.
has agreed with its lenders to amend (the "Amendment") the company's debtor-in-possession financing (the "DIP Financing") to extend the maturity until Sept.