medium · Corporate Credit Analysis distressed
In a 'Double-Dip' structure used in some distressed refinancings, what is the 'first dip' available to the new lenders?
- The first quarterly interest payment made fully in cash shortly before the company's bankruptcy filing date
- A personal guarantee from the chief executive officer of the parent holding company
- The contractual right to receive a negotiated break-up fee in a Section 363 asset sale process
- A claim on an intercompany note from the Operating Company pledged to the Holding Company lenders.
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