We know this publication is about dispute resolution, but what we really want to talk about in this article is avoiding insolvency and bankruptcy disputes.
“If Only You Had Come to Us Sooner”
Canada, Insolvency & Restructuring, Borden Ladner Gervais LLP, Bankruptcy, Board of directors, Debt, Dispute resolution, Liquidation, Cashflow, Bankruptcy and Insolvency Act 1985 (Canada), Chief financial officer
Debtor in Possession (“DIP”) financing is essentially new bridge financing that is provided to a corporation as it undergoes insolvency proceedings. The term exists because the corporation maintains possession of its assets during this process as opposed to having a bankruptcy trustee take possession. The concept derived from the United States of America where DIP financing is expressly provided for under c.11 of the Bankruptcy Code and allows a bankrupt corporation to incur new debt for the purposes of carrying on business operations.
Canada, Insolvency & Restructuring, Litigation, Miller Thomson LLP, Bankruptcy, Debtor, Debt, Tax deduction, Cashflow, Debtor in possession, Bridge loan, Canada Revenue Agency, Bankruptcy and Insolvency Act 1985 (Canada)