The ability of a bankruptcy trustee or chapter 11 debtor-in-possession to obtain financing may be crucial to the success of a chapter 11 case as a means of funding operations or distributions under a plan of reorganization. Such financing may also be necessary and appropriate to finance litigation that can generate value for the bankruptcy estate, even if the financing is provided by corporate “insiders” of the debtor and must therefore be subjected to heightened scrutiny.
Source: Business Restructuring Review Vol. 25 No. 2 | March-April 2026