medium · Corporate Credit Analysis

A debtor-in-possession (DIP) provides $50 million in financing to bridge a company to a Section 363 sale.

What is the typical status of this DIP claim relative to pre-petition general unsecured claims?

  1. Pari passu with general unsecured claims
  2. Subordinated to pre-petition trade payables
  3. Subordinated to administrative professional fees
  4. Superpriority administrative expense status

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