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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with "debtor" or "debtor in possession." Quite the contrary, when
Debtor in possession (DIP) financing is financing obtained by an insolvent debtor while restructuring its business.
A debtor in possession may be sued without leave of court about its conduct of the business.(23) The action may be brought in the district court for the district in which an action could have been brought in state or federal court had there been no bankruptcy filing.(24)
On the commencement of a Chapter 11 bankruptcy case, the bankruptcy code requires the receiver to redeliver the property to the landlord as the "debtor in possession. " This terminates the authority of the receiver to enter into leases.
* The court either appoints a trustee to run the business during reorganization proceedings or allows the debtor, as debtor in possession, to operate the business.
This section limits certain avoidance powers granted to a bankruptcy trustee or debtor in possession as against the reclaimed goods.