Zone of Insolvency

Zone of Insolvency

Tag Archives: DIP Financing

Rolling DIPs vs. Creeping DIPs

Posted in Canada
Has the law changed in Canada based on the September, 2017 decision of Justice Myers of the Ontario Superior Court of Justice in the Toys ”R” Us (Canada) Ltd. case? Section 11.2 of the Canadian Companies’ Creditors Arrangement Act (“CCAA”) allows the Court to create a charge to secure a DIP financing. However, that section… Continue Reading

Break-Up Fees Available to Lenders too?

Posted in U.S.
A break-up fee is typically used to encourage a party to act as the initial or “stalking horse” bidder in connection with a sale under section 363 of the Bankruptcy Code.  Under certain circumstances, a potential debtor may agree to pay a break-up fee to a prospective lender to entice the lender to provide the… Continue Reading