(PRWEB) July 12, 2012
Irvin Capital LLC offered to invest $6 million in DIP (Debtor in Possession) financing and Letters of Credit in the Connaught Group. In addition, they would assist in providing up to $20 million in financing upon emergence from Chapter 11 bankruptcy.
Debtor in Possession (DIP) financing is made available to a debtor and allows the company to maintain its operations during a Chapter 11 bankruptcy. A debtor in possession is generally attempting to fulfill its reorganization plan, discharging certain debts and changing any structural weaknesses to put it on a path to profitability. A company often requires financing in order to restructure, and DIP financing enables it to do so. Connaught Group filed for Chapter 11 bankruptcy on February 9, 2012.