Roll Up (Financial Restructuring & Bankruptcy Glossary)

Summary

A process by which prepetition lenders provide a postpetition financing facility that pays off the prepetition secured debt. As postpetition funding is advanced, the debtor applies an equal amount of collateral first to the repayment of the prepetition facility until the outstanding debts are “rolled up” into the postpetition facility. In this way, a roll-up transforms the lenders’ prepetition claims into a postpetition, administrative expense.