Distressed companies often face the following challenge: having devised a plan to stabilize the company, restructure its operations and/or right-size its balance sheet, the company needs time and, thus, liquidity — which it may not have — to bridge the period through a turnaround. At the same time, lenders and other traditional sources of capital may be unwilling to provide new capital to the company outside of Chapter 11 given the circumstances and credit risk. For borrowers facing this dilemma, Chapter 11 offers two unique financing solutions.

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