Debtor-in-Possession (DIP) | Practical Law

Debtor-in-Possession (DIP) | Practical Law

Debtor-in-Possession (DIP)

Debtor-in-Possession (DIP)

Practical Law Glossary Item 6-382-3389 (Approx. 2 pages)

Glossary

Debtor-in-Possession (DIP)

The debtor in a Chapter 11 case who remains in possession and control of its assets and business operations, unless replaced by a Chapter 11 trustee. The DIP has all the powers of a bankruptcy trustee, including avoidance powers, as well as a variety of duties, obligations, and fiduciary responsibilities to the court and creditors.