Debtor-in-Possession (DIP) Financing
When businesses face financial distress, access to capital often becomes limited at the exact moment it’s needed most. Credit lines tighten, advances stop, and liquidity disappears.
Debtor-in-possession (DIP) financing is designed to provide working capital to businesses preparing to file or already operating under—Chapter 11 bankruptcy protection. Rather than signaling the end, Chapter 11 can create the opportunity to stabilize operations, restructure effectively, and reposition the company for long-term success.
How DIP Financing Supports Recovery
DIP financing can help your business:
With the right capital and strategy in place, Chapter 11 can become a structured reset rather than a shutdown.
Who is a Strong Candidate?
Businesses that benefit most from DIP financing typically have:
DIP financing is built to support recovery — not liquidation.
SouthStar Capital has extensive experience in DIP financing, providing businesses with the funding they need to navigate through the bankruptcy process. Ideally, we encourage clients to come to us before filing for bankruptcy, allowing us to craft the best possible strategy and prepare for the Chapter 11 filing. This also enables us to file immediately after your bankruptcy filing, ensuring the process moves forward without unnecessary delays.
That said, if you have already filed for Chapter 11 bankruptcy, SouthStar may still be able to help. Our deep expertise in DIP financing ensures we can provide solutions even after the filing.
Discover how court-approved DIP financing helped these companies protect operations and emerge from Chapter 11 positioned for growth.