Debtor In Possession - DIP
- Debtor In Possession - DIP
An individual or corporation that has filed for Chapter 11 bankruptcy protection and remains in control of property that a creditor has a lien against, or retains the power to operate a business. A debtor who files a Chapter 11 bankruptcy case becomes the debtor in possession (DIP). The DIP continues to run the business and has the powers and obligation of a trustee to operate in the best interest of any creditors. A DIP can operate in the ordinary course of business, but is required to seek court approval for any actions that fall outside of the scope of regular business activities. The DIP must also keep precise financial records and file appropriate tax returns.
After filing for Chapter 11 bankruptcy, new bank accounts are opened that name the debtor in possession on the account. A debtor in possession can be terminated and the court will appoint a trustee in the event that assets are improperly managed or the debtor in possession is not following court orders. The United States Trustee's office maintains guidelines that specify the duties of a debtor in possession.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
debtor in possession — (debtor in possession (DIP)) A debtor in possession occurs only in a Chapter 11 case. The debtor is presumed to remain in possession of its assets and business operation, with most of the powers and duties of a trustee. also see trustee,… … Glossary of Bankruptcy
debtor-in-possession — (debtor in possession (DIP)) A debtor in possession occurs only in a Chapter 11 case. The debtor is presumed to remain in possession of its assets and business operation, with most of the powers and duties of a trustee. also see trustee,… … Glossary of Bankruptcy
debtor-in-possession — (DIP) USA The debtor in a Chapter 11 case who remains in possession and control of its assets and business operations, unless replaced by a Chapter 11 trustee. Practical Law Dictionary. Glossary of UK, US and international legal terms.… … Law dictionary
Debtor-in-possession financing — or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity, and any other securities issued by a company. It gives a … Wikipedia
Debtor in possession — Bankruptcy in the United States Bankruptcy in the United States Authority · History U.S. Trustee Court … Wikipedia
Debtor-in-possession financing — New debt obtained by a firm during the Chapter 11 bankruptcy process. The New York Times Financial Glossary * * * debtor in possession financing debtor in possession financing ➔ financing * * * debtor in possession financing UK US noun [U]… … Financial and business terms
debtor-in-possession financing — New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 ( c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. Bloomberg Financial… … Financial and business terms
Debtor-In-Possession Financing - DIP Financing — Financing arranged by a company while under the Chapter 11 bankruptcy process. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims. Chapter 11 gives the debtor a fresh… … Investment dictionary
DIP — (debtor in possession (DIP)) A debtor in possession occurs only in a Chapter 11 case. The debtor is presumed to remain in possession of its assets and business operation, with most of the powers and duties of a trustee. also see trustee,… … Glossary of Bankruptcy
DIP — index immerse (plunge into), subside Burton s Legal Thesaurus. William C. Burton. 2006 DIP … Law dictionary
