Question

Which of the following is true about the DIP financing? a. Borrowing base loan structure b....

Which of the following is true about the DIP financing?

a. Borrowing base loan structure

b. Provided emergency liquidity duirng bankruptcy reogranization

c. Did not include pledge of PP&E financed by Apple

d. 9.5% cash interest rate per annum.

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Answer #1

Answer is "b". (Provided Emergency Liquidity during Bankruptcy Reorganisation)

Usually DIP financing (Debtor-in-possession financing) is a special form of financing provided for companies in financial distress, typically during restructuring.

Hence, "Provided emergency liquidity during bankruptcy reogranization" is true about DIP Financing.

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