A debtor in possession (DIP) is an individual or entity that has filed for Chapter 11 bankruptcy protection but still owns property that creditors have legal claims under a lien or other lien.
Debtor-in-possession (DIP) is typically a transitional stage in which the debtor attempts to salvage the value of assets after bankruptcy.
Although DIPs often have significant influence over the assets they hold, creditors may end up using the court to force the sale of DIP assets.
A key advantage of DIP status is the ability to continue to conduct business, albeit with the authority and obligation to do so in the interests of any creditors.
Bankruptcy is a legal proceeding carried out in order for individuals or legal entities to be freed from their debts, while at the same time providing creditors with the opportunity to repay them.
A bond is a court decision that gives the creditor the right to take possession of the debtor’s property if the debtor fails to fulfill its contractual obligations.
The lifetime cost of a product or service refers to the total cost of owning it over its lifetime in addition to the initial purchase cost - in business you may hear this called TCO (Total Cost of Ownership).
In the subordination agreement, priority is given to secured debts that are arranged one behind the other in order to recover the amount of repayment from the debtor in the event of foreclosure or bankruptcy.