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DIP Debtor in Position Financing


Southwest Next Captial Management has expertise in special situation financing or debtor in possession financing (DIP financing).  Many times, companies that file Chapter 11 bankruptcy emerge from the process as healthy, viable entities. Key to a favorable outcome is to acknowledge that bankruptcy may become a possibility at certain stages in a company's life cycle and to plan for it. Part of planning, perhaps the most critical part for a successful turnaround, is how a company evaluates and lines up lenders, and works thru the Chapter 11 process.  Recently there has been an increased demand for debtor-in-possession (DIP) financing. DIP financing is desirable for companies with turnaround potential because it provides management a chance to work its way out of bankruptcy instead of liquidating. In return, DIP lenders get a priority position among creditors

Target Situations

  • Companies in or near bankruptcy
  • Underperforming or troubled businesses
  • Non-core subsidiaries of larger companies
  • Companies in breach of their covenants
  • Businesses in out-of-favor industries 

Southwest Next Capital Management has extensive experience in the Arizona debtor in possession, Arizona DIP financing space and has the local infrastructure, capital, experience, and knowledge to expedite your firm thru this process.