Bonus Episode 1: DIP Lending

Warning: This podcast is not a substitute for professional financial or legal advice. Be sure you speak to a CRO or Lawyer before filing for Bankruptcy.

Welcome to Corporate Bankruptcy A to Z, a show designed to educate you on the ins and outs and the dos and don’ts of corporate bankruptcy. On this show, you will hear experts from every step of the bankruptcy process answer the questions that you will need to know, from the simple to the complex.

04:17 – What is Debtor in Possession Lending (DIP loan)
04:49 – Is a DIP loan is different from a conventional loan?
05:13 – New DIP lender’s higher level of protection – 1st lien
07:27 – Is a DIP loan like a line of credit or term loan?
08:03 – How long should the DIP loan stay in existence?
09:05 – Why a lender would want to make a loan to a company in bankruptcy
10:06 – Legal position of the new lender
10:52 – Other reasons for a DIP loan if you arent needing to pay vendors
12:12 – Requirements to get a DIP loan
13:20 – Why the DIP loan gets preference over all other debts
18:10 – Who has control over cash receipts for a DIP loan
19:28 – Is the DIP loan mutually exclusive from the bankruptcy?
20:25 – Cash available on a DIP loan
21:38 – Are personal guarantees necessary to get a DIP loan?
22:20 – How would new personal guarantees needed to get a DIP loan impact other PG’s
24:06 – Are interest rates higher for a DIP loan?
24:43 – Collateral necessary to get a DIP loan?
26:00 – Parting words on DIP lending – Look for the best deal
28:11 – Highlights from Mike’s DIP best case
32:06 – Overtime

Guest Info:
Mike Fussell oversees new business opportunities and provides guidance in structuring credit facilities to middle-market companies utilized for growth, acquisitions, turn-arounds and general working capital needs. He maintains relationships with Aegis’ capital providers and serves as Chair of the Credit Committee. Michael has over 15 years of experience in finance with positions at RBC, PNC and Wells Fargo serving in various commercial banking capacities.
Call him at 813-437-2511.

Host Info:
Neil Goldstein (AKA the Workout Guy) is the founder of Elementary Business inc. a specialized consulting firm for distressed businesses and entities in transition. With many successes in his portfolio, Mr. Goldstein focuses on the needs of the owner to achieve results in profitability, sale of the company or finding a partner for growth.
Neil’s book is now available on Amazon.com
Call 940-808-9451 or Email neil@elementarybusiness.com or visit ElementaryBusiness.com.

Stephen B. Ravin is a highly seasoned insolvency and bankruptcy attorney, with more than 40 years experience. He has served as a trustee and has represented trustees, individual and corporate debtors, creditors, creditors’ committees, assignees for the benefit of creditors and receivers.
Call 973-286-6714. Or email him sravin@saul.com You can also visit his firm’s website
Want more content? Then head over to Patreon and become a member. On Patreon we are working on a catalogue of bonus episodes and you can hear the answers to your questions from a business perspective instead of just a legal one. If you want more direct access to Neil and Steve or want to supplement the education you are already getting here, then follow the link in the show notes below and become a Patron today.

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