DIP Terms

This practice note discusses the terms included in a debtor-in-possession (DIP) credit agreement and/or the DIP interim and final order. DIP financing entails a debtor obtaining a loan, usually on a secured basis, from one or more lenders in order to fund its operations throughout the course of its bankruptcy proceedings. The bankruptcy court must authorize the debtor's entry into any post-petition financing arrangement secured by assets of the estate. See 11 U.S.C. § 364(c)–(d).