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What is DIP or rescue financing?

Debtor-in-possession (DIP) financing is a loan to a company already in Chapter 11, approved by the bankruptcy court and typically granted priority over existing debt so the business can operate through the case. Rescue financing is the out-of-court version: new money to a distressed borrower before any filing. On TerraNova, 32 active funds list a special-situations appetite (rescue, DIP, turnaround or restructuring).

Figures from the researched book · updated Sep 14, 2026 · refreshed daily · rendered Sep 15, 2026