Cyxtera Technologies Inc (fka CYXTQ)

[DD-214]

As he/she said DIP doesn’t own shit, they are a creditor with first dibs on getting paid back..

Here ya go..

Understanding Debtor-in-Possession (DIP) Financing

Since Chapter 11 favors corporate reorganization over liquidation, filing for protection can offer a vital lifeline to distressed companies in need of financing. In debtor-in-possession (DIP) financing, the court must approve the financing plan consistent with the protection granted to the business. Oversight of the loan by the lender is also subject to the court's approval and protection. If the financing is approved, the business will have the liquidity it needs to keep operating.

When a company is able to secure DIP financing, it lets vendors, suppliers, and customers know that the debtor will be able to remain in business, provide services, and make payments for goods and services during its reorganization. If the lender has found that the company is worthy of credit after examining its finances, it stands to reason that the marketplace will come to the same conclusion.

CYXTQ