Trends in DIP Financing

Trends in DIP Financing

This panel discusses financing orders, milestones and other case management through the DIP facility. What should be allowed for case management by secured creditors via DIP-financing and/or cash-collateral orders, including the case milestones? What terms are and should be acceptable in first-day cash-collateral and DIP-financing orders (Aegean) — too much control, or simply adequate protection? What does it take for a third party to prime? This session also focuses on structural priming, including by taking liens on unencumbered foreign assets (Hexion), using DIP financing as a tool to protect pre-petition debt, the use of roll-ups, the ratio of new money to roll-up that is necessary/“market,” justifying a zero-new-money roll-up (EP Energy), providing a secured term loan pre-bankruptcy and using the proceeds as cash collateral, and rolling up pre-filing emergency loans (Westmoreland).

New York City Bankruptcy Conference 2021
2021
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