DIP Financing | Practical Law

DIP Financing | Practical Law

DIP Financing

DIP Financing

Practical Law Glossary Item 0-382-3405 (Approx. 2 pages)

Glossary

DIP Financing

A special type of bank loan financing provided to Chapter 11 debtors to finance their operations during the bankruptcy case. With superpriority claim status, DIP financing has priority over all other existing debt, equity and other claims against the company. It is ordinarily provided on stricter terms to the debtor than ordinary financing. For further information, see Practice Note, DIP Financing: Overview.