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Exit loan
A loan issued by a company exiting US chapter 11 bankruptcy. The proceeds of the loan are typically used in part to repay the debtor-in-possession financing borrowed under chapter 11. Alternatively, the DIP lenders may have the option of rolling into an exit loan. In a pre-packaged chapter 11, exit finance is agreed at the time of the bankruptcy filing. More usually, a borrower seeks an exit loan at the chapter 11 process once the court-sanctioned restructuring of its previous debt has been agreed.
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