A DIP financing provided by a debtor's existing lenders seeking to protect outstanding debt by lending more money.

The existing secured lender is often the DIP lender, due in part to courts' increased willingness to approve roll-ups of prepetition debt. There are several special advantages for existing lenders to provide DIP financing, including the ability to negotiate for the validation of prepetition liens and releases, the avoidance of priming fights and cash collateral litigation and requiring less due diligence than new lenders. For more information, see Practice Note, DIP Financing: Overview.