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