In filing for bankruptcy, one of the most important decisions a debtor makes is with regard to debtor-in-possession (“DIP”) financing. Typically, a debtor negotiates with its pre-petition lender who then finances the Chapter 11 case.
The Scope of Indemnification in DIP Financing Agreements
This article examines the typical DIP financing indemnification provision and the less frequently seen pre-petition indemnification provision, and examines the effect of pre-petition indemnifications on the bankruptcy estate.
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