Debtor-in-Possession financing — a loan extended to a borrower already in Chapter 11 bankruptcy, with super-priority status under Bankruptcy Code §364 that primes existing pre-petition secured debt. DIP terms typically include 12%–18% cash-pay coupon, 12-month maturity, 1%–2% closing fee, super-priority lien on substantially all assets (Section 364(c) and (d)), and tight milestones (sale process, plan confirmation). Specialty lenders earn 15%–22% blended IRRs because the super-priority status typically recovers fully in both reorganization and liquidation scenarios; the primary risk is the sim 10% failed-restructuring tail.