Exit Financing | Practical Law

Exit Financing | Practical Law

Exit Financing

Exit Financing

Practical Law Glossary Item 5-383-9197 (Approx. 2 pages)

Glossary

Exit Financing

Also known as exit facility. The financing provided to Chapter 11 debtors to allow them to emerge from bankruptcy. The availability of adequate exit financing is often a condition to confirmation of a plan of reorganization. Reorganized debtors use exit financing to pay creditors' claims under the plan and to fund their ongoing operations after bankruptcy.