Debtor-in-Possession (DIP) Financing 

Debtor-in-Possession (commonly referred to as “DIP”) Financing is  financing provided to real estate companies who have filed for bankruptcy protection and reorganization under Chapter 11 of the United States Code.  DIP Financing is provided on a post-petition basis — after the filing date of the company’s bankruptcy.

Stormfield has a long track record  of success in providing real estate DIP Financing.  In conjunction with your attorney, we’ll help navigate you through the process rapidly and efficiently.

PROPERTY TYPES: All commercial property types

LENDING AREA: Northeastern and Mid-Atlantic USA focused, but will consider all major cities nationally

LOAN SIZE: From $500,000 to $7,500,000

LOAN TERM: 1-3 Years

AMORTIZATION: Typically, Interest-only

INTEREST RATE: 6.99% – 11.99%

RECOURSE: Typically, there will be recourse to Sponsors

EXPENSE DEPOSIT: Adequate to cover third-party reports, legal fees, and customary expenses

CLOSING TIME: Subject to court approval