Clifford Chance

DIP Financing in US Chapter 11 Cases: How Sponsors Are Utilizing Equity Conversions to Obtain Recoveries in Reorganized Debtors

August 27, 2024

In an article first published in the July issue of Butterworths Journal of International Banking and Financial Law, the authors examine sponsor-provided debtor-in-possession financing that converts into equity in the reorganized debtor upon emergence from bankruptcy, including the consequences of, and recent challenges to sponsor-led convertible financing.

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