DIP Financing

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An opportunity to restructure or pay off liabilities and acquire needed supplies.

DIP Financing Gives Companies a Chance to Restructure

Debtor-in-possession, or DIP financing, allows the owners of insolvent companies to restructure, pay off liabilities, and order needed supplies. A first-priority debt, DIP financing helps companies regain their secure financial footing.

Companies may turn to current shareholders as lenders, but lenders can’t be company insiders for DIP financing. When approaching alternative lenders, further caution is warranted because the goal of DIP funds must be to help the company—not to buy the company and its assets.

Pravati Capital allows clients to regain secure financial footing in a compliant way.

Pravati Capital’s DIP Financing Process

Our process for DIP financing approval and funding is fast, easy, and secure. With terms and contracts designed for each client and loans in a variety of amounts, Pravati offers lawyers and their bankruptcy clients the capital they need to implement their plan for reorganization.

APPLICATION

REVIEW

APPROVAL

The firm’s lawyer presents Pravati underwriters with case information for their debtor-in-possession clients.

Pravati underwriters review the details of the Chapter 11 filing and the restructuring plans.

Once funding is approved, Pravati transfers funds to the trust, which can then use the money to negotiate debt, buy supplies, and implement processes that improve the business.

APPLICATION

The firm’s lawyer presents Pravati underwriters with case information for their debtor-in-possession clients.

REVIEW

Pravati underwriters review the details of the Chapter 11 filing and the restructuring plans.

APPROVAL

Once funding is approved, Pravati transfers funds to the trust, which can then use the money to negotiate debt, buy supplies, and implement processes that improve the business.