DIP Financing

DIP Financing Gives Companies a Chance to Restructure

Chapter 11 bankruptcy allows struggling, cash-poor companies to restructure and reorganize—not to liquidate. But since the owners of companies in Chapter 11 generally don’t have the cash on hand for payments and negotiating power, they often find it takes far more time and effort to secure the capital than they expected.

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


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To assist companies filing for Chapter 11 bankruptcy, Pravati Capital offers DIP financing. To create a stronger company, Pravati’s assistance gives clients a chance to regain their secure financial footing in a compliant way.

Traditional lenders are often hesitant to lend to small companies that are having financial troubles, even if the restructured organization represents a promising investment. A company’s next step may be to look at current shareholders as lenders, but for DIP financing, lenders can’t be company insiders. When turning to alternative lenders, companies need to be careful because the goal of DIP funds must be to help the company—not to buy the company and its assets.

Pravati Capital’s DIP Financing Process

Our process for DIP financing approval and funding is fast, easy, and secure.

  1. APPLICATION: The firm’s lawyer presents Pravati underwriters with case information for their debtor-in-possession clients.
  2. REVIEW: Pravati underwriters review the details of the Chapter 11 filing and the restructuring plans.
  3. 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.
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.

To help your clients get the DIP financing they need, give Pravati Capital a call today.

Call us today 1-844-772-8284

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