medium · Corporate Credit Analysis
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 in cash before the company files for bankruptcy.
- A personal guarantee from the CEO of the company.
- The right to receive a break-up fee in a Section 363 sale.
- A claim on an intercompany note from the Operating Company pledged to the Holding Company lenders.
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