SalemBridge Advisors provides Debtor-in-Possession Financing (DIP Loans) to companies that are currently distressed and undergoing a Chapter 11 Bankruptcy for restructuring. This type of special financing is a post-petition arrangement that allows the company to retain its assets and maintain its operations, while giving the company a fresh new injection of working capital that is - senior or equal - to all other existing debt, unsecured debt, equity and other claims, depending on the court’s ruling.

 

If your company has decided that a Chapter 11 Bankruptcy is more suitable than an out-of-court restructuring, and have already filed for Chapter 11 protection, with a viable and succinct plan of reorganization in place, SalemBridge can provide New Money DIP Financing if additional capital has not yet been by provided by existing pre-petition creditors or others capital providers.

 

Although usually more convenient to have pre-petition lenders to assume the DIP Lender role to avoid inter-creditor or priming fights, many companies however find themselves needing third-party financing or perhaps even Junior DIP Financing to enable them to carry out their turnaround/restructuring objectives. This is where SalemBridge can help as we will work with your team, legal counsel and attorney on structuring a deal with our credit partners that are in line with local regulations and restrictions within your company’s jurisdiction in order to avoid wasting valuable amounts of time.



 

Transaction Size:  $100,000 to $100,000,000

Rates: LIBOR + 3-12%

Structure/Terms:

• Line of Credit / Revolver / Term Loan

• 1-2 year terms

• Convertible / Non-Convertible options

• DIP-to-Exit (rare)

Covenants: Milestone Achievements (Court approval of disclosure statement, confirmation hearing)

Fees: 1-4%

Criteria: Must be in Chapter 11 Bankruptcy or considering filing, used for working capital / liquidity or prepping for a sale of assets

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