Debtor‑in‑possession (DIP) financing is one of the most consequential early events in a chapter 11 case. The terms approved at the outset often shape the debtor’s restructuring options and, ultimately, the distribution of value among stakeholders. While DIP facilities are typically negotiated before a bankruptcy filing, the approval process—split between interim and final orders—creates an important window for unsecured creditors’ committees to influence key terms.
In a recent article published in the ABI Journal, Province Tax Associate Anish Bachu examines how UCCs operate within that narrow but critical space. Using the chapter 11 case of Spirit Aviation Holdings Inc. as a case study, the article explores how committees have successfully negotiated changes to roll‑up mechanics, challenge periods, collateral scope, carve‑outs, reporting rights, milestones, and default provisions between interim and final DIP approval.
Click here to read the article.