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)

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References in periodicals archive ?
Linens now has access to $700 million debtor-in-posession financing, "which can be used to pay vendors, if necessary," a spokeswoman from the chain told HFN.