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'DIP' Loans Are Scarce, Complicating Bankruptcies

Wall Street Journal Original article ›

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LyrArc Article Gist
To get some idea of how tight credit conditions are, debtor in possession and exit financing is hard to get because GE one of the world's largest lenderslast year doing $1.75 billion of restructuring loans made a recent undisclosed decision to largely halt lending to companies in bankruptcy protection or near it. DIP financing is highly profitable for GE because its first to get paid back at high interest rates.


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