The Viability of Debtor-in-Possession Loans in the Economic Crisis: An Immediate Look at the Effects the Financial Crisis May Have on DIP Lending (Aspatore Special Report)

Given today's economy, many companies are aware that the possibility of bankruptcy exists regardless of size or industry. As businesses find themselves facing bankruptcy, debtor-in-possession (DIP) financing is an option many consider. But given the state of the economy because of our nation's current financial crisis, it is possible that fewer lenders will be willing to provide funding for these distressed businesses. Is there currently a DIP loan shortage? What benefits exist for lenders who provide these loans during such a turbulent time? How can these loans be negotiated in order to save companies considering Chapter 11? The Viability of Debtor-in-Possession Loans in the Economic Crisis provides feedback from some of the nation's leading legal minds on the risks and benefits of DIP loans for both lenders, creditors, and borrowers during the current financial crisis. These experts discuss the reasons for the recent recline in DIP financing and offer their thoughts on keeping DIP loans alive despite the economic climate. This in-depth report offers readers an on-the-spot look at this issue as it continues to unfold.

1. Susan Alker, Partner, Reed Smith LLP The Benefits and Risks of DIP Loans in Troubled Economic Times

2. G. Larry Engel, Partner, Morrison & Foerster LLP The Current Crisis in DIP Lending "

3. Rick Hyman, Partner, Mayer Brown LLP Debtor-in-Possession Lending: Why Loans Should Be Made to a Bankrupt Company