Confirm the legal posture
Coordinate with bankruptcy counsel on authority, case milestones and required orders.
Chapter 11 and DIP capital · Nationwide
DIP financing and Chapter 11 loans. Collateral-aware financing in a court-supervised process.
Debtor-in-possession financing may provide liquidity for qualifying businesses operating under Chapter 11 protection. MDN Capital Consulting helps evaluate potential private capital structures, collateral coverage and funding needs alongside the sponsor’s bankruptcy counsel and financial advisers.
Financing overview
Distinguish DIP financing from a bankruptcy exit loan.
DIP financing is generally obtained by a debtor during a Chapter 11 case and may require bankruptcy court approval. A lender may seek liens, adequate protection, reporting, budget controls and other negotiated protections. The court’s treatment of existing secured creditors and priority provisions can determine whether a proposal is viable.
A bankruptcy exit loan is different: it generally funds in connection with emergence from Chapter 11 and may retire or refinance existing debt as part of a confirmed or otherwise approved restructuring. MDN evaluates the proposed capital request while legal counsel addresses authority, court filings and required approvals.
For broader parameters, review MDN Capital's commercial loan criteria, or submit a financing request for a transaction-specific review.
Key credit considerations
What capital providers typically evaluate.
Financing availability, requested proceeds and lender terms are determined by the full underwriting picture.
Case posturePetition date, docket, plan status and counsel
Court deadlines and authority affect the structure.
CollateralAs-is value, liens and lien priority
Lender proceeds depend on enforceable security and supportable value.
Use of fundsOperating budget, payoff, fees and reserves
Each stage of the restructuring needs a documented budget.
Senior creditorExisting lender claim and proposed treatment
Adequate protection and priming issues require legal analysis.
MilestonesCourt approvals, sale or reorganization schedule
Proposed funding must align with the judicial process.
ExitConfirmed sale, refinance or recapitalization
Debt service and repayment must be supportable.
Illustrative considerations only. No approval, leverage, pricing, closing date or financing availability is guaranteed.
Financing situations
Opportunities evaluated on their own merits.
MDN considers the property, sponsor, financing objective and potential repayment source before identifying compatible capital providers.
Explore Past ClosingsEntitled land in Chapter 11
Income-producing commercial assets
Development property
Hospitality and operating real estate
Mixed-use collateral
Court-approved acquisition or exit structures
Our process
Align financing diligence with restructuring milestones.
A complete package allows potential lenders to assess feasibility without relying on unsupported assumptions.
Analyze collateral and claims
Review appraisal, lien schedule, senior debt and cash needs.
Separate funding phases
Model any interim DIP draw, exit financing and final payoff distinctly.
Coordinate lender diligence
Prepare a capital package consistent with counsel’s court timetable.
Why MDN Capital
Clear analysis. Thoughtful capital sourcing.
Transaction-first review
We start with collateral economics, sponsor capacity, capital needs and realistic repayment options.
Relevant capital relationships
We evaluate financing possibilities through lender and private-capital relationships rather than treating every deal alike.
Disciplined communication
We organize information and flag underwriting questions early, helping sponsors approach the market with clarity.
Frequently asked questions
Answers to common financing questions.
General information only. Terms depend on lender approval and individual circumstances; legal and tax matters require qualified advisers.
What is a DIP loan?
A debtor-in-possession loan provides financing during a Chapter 11 case, subject to applicable bankruptcy law and, commonly, court authorization.
Is a DIP loan the same as a Chapter 11 exit loan?
No. DIP financing supports the debtor while the case is pending. Exit financing generally funds in connection with emergence or a restructuring transaction.
Can DIP financing prime an existing senior mortgage?
Some structures seek priming liens, but those arrangements have specific legal and court approval requirements, including protection of affected secured creditors.
Can land secure DIP financing?
Potentially. Lenders assess valuation, entitlement status, development needs, liquidity and legal control of the collateral.
What should be included in an initial request?
Provide the case number, counsel contact, collateral valuation, lien and payoff schedule, proposed budget, court timetable and exit strategy.
Related financing
Explore complementary capital solutions.
Other financing structures may be relevant depending on property type, transaction timing, equity and projected repayment.
Distressed CRE Financing
Review financing considerations and possible capital structures for this related transaction type.
Land Development Loans
Review financing considerations and possible capital structures for this related transaction type.
Commercial Bridge Loans
Review financing considerations and possible capital structures for this related transaction type.
Have a financing opportunity?
Discuss a realistic next step.
Share the property, requested proceeds, timing, existing debt and repayment plan so we can assess the request and potential lending relationships.