Bankruptcy Financing
Financing arranged by a company while under the chapter 11 bankruptcy process. Clearly, such financing is extremely high risk and is done at a relatively high interest rate. Investopedia Says:
Sometimes referred to as "turnaround financing" or "debtor in possession financing". It can be very profitable to lend to companies that need money this badly, but at the same time, a lender runs a high risk of the creditor defaulting. Related Terms:
Bankruptcy
Chapter 11
Debtor in Possession Financing
Default Risk
Discharge in Bankruptcy
Interest Rate
Prepackaged Bankruptcy |