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Debtor-in-possession loan (DIP loan)
A loan made to a borrower that is under US chapter 11 bankrutpcy. The DIP loan ranks senior to debt taken on before the bankruptcy filing (pre-petition debt). Pre-petition lenders often have the right to roll up into the DIP. DIP loans are unique to the US bankruptcy process. However, there are some plans to introduce a similar concept in the insolvency regimes of other countries.
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