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Turning your business around begins with determining a plan for reorganization. This is the document that outlines the Chapter 11 exit strategy of the Debtor-In-Possession (DIP). It sets forth the new capital structure of the DIP and the treatment of the various classes of creditors and equity holders. The availability of DIP financing may depend on the perceived viability of the company and on its ability to successfully complete a Plan of Reorganization (POR). The Plan of Reorganization must specify how the debtor intends to pay the creditors and DIP financing is a means toward that end. |


