Ch 3 Deck 13 Flashcards
1
Q
form of financing used for a company about to file or who has already filed for bankruptcy under Chapter 11 of the Bankruptcy Code
A
Debtor in possession (DIP) financing
2
Q
DIP financing has priority over
A
common stockholders in a bankruptcy proceeding
3
Q
DIP financing allows a company to
A
pay employees during a bankruptcy
4
Q
DIP financing provides a source of funds that may not be available from
A
a bank
5
Q
the company to make the first bid on the assets of a bankrupt company
A
Stalking horse bidder
6
Q
The stalking horse bidder negotiates an agreement that
A
other bidders must accept or make a better offer
7
Q
The stalking horse bidder has more time for
A
due diligence than other bidders
8
Q
The stalking horse bid comes with no
A
guarantees to close the deal
