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#Polaris fashion place code
To encourage DIP Lenders to extend unsecured financing to a debtor, the Bankruptcy Code gives DIP Lenders an administrative expense priority. This gives incentives to both new and existing lenders to make loans, by providing them with special protections. According to section 364 of the Bankruptcy Code, DIP Financing permits the debtor to obtain post-petition or post-bankruptcy filing credit. Can you obtain financing while filing Chapter 11 Bankruptcy?Ī DIP may obtain financing in the form of debtor in possession financing (“DIP Financing”). DIP status allows a debtor to continue to run its business while having the power and obligation to do so in the best interest of its creditors. The DIP must also keep accurate financial records, ensure its property and file tax returns. The DIP may still do business using the encumbered assets but must seek approval for any actions that are outside of the scope of its normal business activity.
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A Chapter 11 case begins when the bankruptcy petition has been filed, either voluntarily by the debtor, or via an involuntary petition which is filed by creditors.Īs a debtor in possession (“DIP”), a corporation that files a Chapter 11 bankruptcy continues to hold property in which the creditors have a legal claim under a lien or a security interest. Typically, the debtor remains “in possession.” This means it has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. What does Chapter 11 Bankruptcy mean?Ī case filed under Chapter 11 of the United States Bankruptcy Code is often referred to as a “reorganization bankruptcy” and usually involves a corporation or partnership. While a bankruptcy filing might seem ominous, due to the nature of Chapter 11 bankruptcies, business will likely continue as usual at Polaris. Washington Prime Group is the owner of over 100 mall properties, including 8 other properties in Ohio. Recently, the owner of Polaris Fashion Place, Washington Prime Group, filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code.