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