Debtor in Possession

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A person or business that has filed for Chapter 11 bankruptcy protection but is still allowed to maintain control of their assets and continue operating the business.
The company filed for Chapter 11 bankruptcy and was granted DIP status, allowing them to remain in operation while restructuring their debts.
In re B-R Holding Company, LLC (2019). The court approved the debtor's request to operate as a DIP, finding it would allow the company to preserve asset value and maximize creditor return.
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Frequently Asked Questions

Operating as a DIP allows business continuity, preserves customer relationships, and potentially emerges stronger from bankruptcy.

Yes, DIPs require court approval for major decisions outside the ordinary course of business and are monitored by a creditor committee.

In some cases, the court may appoint a trustee if it loses confidence in the debtor's ability to manage assets.

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