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Results for debtor in possession
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A company that continues to operate while under the Chapter 11 bankruptcy process.
Investopedia Says:
Chapter 11 gives the debtor a fresh start, subject to the debtor's fulfillment of its obligations under its plan of reorganization.
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As soon as you invest in a company, you face this risk. Find out what it means. An Overview Of Corporate Bankruptcy
Legal name for a firm or business concern filing for protection from creditors under Chapter 11 of the Bankruptcy code, acting as its own Bankruptcy Trustee.
Financing arrangements given to an insolvent borrower under court supervision may have some attractions to lenders because these are supervised closely by the bankruptcy court.
Situation arising in a bankruptcy when the party who owes money remains in control of the use of property.
Example: After Bite & Die Diners filed for Chapter 11 bankruptcy, they continued to serve customers as a debtor in possession.
A debtor in possession, in United States bankruptcy law, is a person or corporation who has filed a bankruptcy petition, but remains in possession of property upon which a creditor has a lien or similar security interest. A corporation which continues to operate its business under Chapter 11 bankruptcy proceedings is a debtor in possession.
Under certain circumstances, the debtor in possession may be able to keep the property by paying the creditor the fair market value, as opposed to the contract price. This is often the case where the property is a personal vehicle which has depreciated in value since the time of the purchase, and which the debtor needs in order to be able to find or continue employment to pay off his debts.
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 | Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved. Read more |
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| Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Wikipedia. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Debtor in possession". Read more |
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