{"id":194126,"date":"2008-10-23T05:11:00","date_gmt":"2008-10-23T10:11:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/10\/23\/just-in-case-you-were-wondering-how-frozen-up-the-credit-markets-are\/"},"modified":"2008-10-23T05:11:00","modified_gmt":"2008-10-23T10:11:00","slug":"just-in-case-you-were-wondering-how-frozen-up-the-credit-markets-are","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/10\/23\/just-in-case-you-were-wondering-how-frozen-up-the-credit-markets-are\/","title":{"rendered":"Just in Case You Were Wondering How Frozen Up The Credit Markets Are"},"content":{"rendered":"<p>They are now finding that companies in bankruptcy cannot ginf <a href=\"http:\/\/online.wsj.com\/article\/SB122421475294443955.html\">debtor-in-possession and exit financing<\/a> (DIP loans), which are used to provide cash to companies in reorg. <\/p>\n<blockquote><p>Debtor-in-possession, or DIP, financing is essential for the lawyers, layoffs and other restructuring necessary for a company&#8217;s rebirth. Exit financing is used when a company &#8220;exits&#8221; reorganization. Banks have been eager to take part in this market because the loans are the <strong>first to be paid back and command high interest rates<\/strong>.<\/p><\/blockquote>\n<p>(<em>emphasis mine<\/em>)<\/p>\n<p>This is about as safe as a loan can be.  Even if the reorg fails, you are at the head of the line for liquidation, and the interest rates are very good, and people are <strong>still unwilling to lend<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>They are now finding that companies in bankruptcy cannot ginf debtor-in-possession and exit financing (DIP loans), which are used to provide cash to companies in reorg. Debtor-in-possession, or DIP, financing is essential for the lawyers, layoffs and other restructuring necessary for a company&#8217;s rebirth. Exit financing is used when a company &#8220;exits&#8221; reorganization. Banks have &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,1004],"tags":[],"class_list":["post-194126","post","type-post","status-publish","format-standard","hentry","category-bubble","category-finance"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/194126"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=194126"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/194126\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=194126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=194126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=194126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}