Blackridge Technology Intl. Inc. (fka BRTI)

[buccaneer1961]

brti did voluntery chapter 11

DIP Financing as a Potential Solution
A company facing such financial woes is most likely already considering restructuring or even selling the business. Out-of-court workouts are another option and might succeed. However, sometimes a Chapter 11 filing can provide powerful options, including the ability to facilitate financing. If a company needs a loan but a potential lender isn’t willing to provide it or has a concern about a legal challenge, the Bankruptcy Code offers a way to assure a lender that the loan won’t be challenged. This would remain true even if the lender is an insider or potential purchaser.