Post Petition, Exit & Rescue Financing

Arent Fox represents funds and lenders (either with pre-existing relationships with borrowers or new, third party lenders) interested in making Debtor-in-Possession (DIP) loans, Chapter 11 exit financings and/or rescue financings available to help borrowers fund Chapter 11 reorganizations, Section 363 sale processes, operational turnarounds, out-of-court restructurings, and other working capital needs.

Our Work

Arent Fox has a wealth of experience in negotiating credit terms in this context, and provides critical advice concerning the nature of "market" terms for such financings, as well as the dynamics at play in a Chapter 11 case when it comes to having such financings approved by various constituencies (including creditors' committees, the US Trustee's Office, and bankruptcy courts). Often, clients that are interested in making such financings available have identified other strategic or financial outcomes that they wish to pursue, such as acquiring assets, co-sponsoring plans of reorganization, and the like, and Arent Fox's multidimensional bankruptcy and financial restructuring practice is skilled in shepherding such transactions to a successful consummation for its clients. In addition to providing transactional advice, Arent Fox's renowned team of effective bankruptcy litigators can be brought to bear if it becomes necessary to establish and enforce a lender's rights before a bankruptcy court or elsewhere.