Real Estate DIP Financing
Connect financing needs during bankruptcy to the property’s operating budget, collateral position, and proposed path to a sale or reorganization.
For debtors, creditors, investors, and bankruptcy counsel evaluating debtor-in-possession financing for commercial or multifamily real estate. AGIMANO’s focus is the economic case for the capital: what it funds, how it protects or supports the property, and how it can be repaid.
When the proceeding needs a funded operating plan
- Operating liquidity is insufficient to maintain the property through the proposed process
- Essential maintenance, insurance, taxes, or working capital require a funding plan
- A sale or reorganization depends on a defined period of operating support
- Stakeholders need to evaluate a proposed financing budget and repayment assumptions
What the assignment can cover.
Define the liquidity requirement
Review available cash, forecast receipts, operating payments, reserves, professional-cost assumptions, and property capital needs. Identify the timing and size of the funding gap.
Evaluate the collateral and proposal
Assess property economics and the proposed financing structure alongside existing obligations. Coordinate with counsel on the requested protections, financing priority, and court process.
Test the exit and controls
Compare the financing needs with the proposed sale, refinancing, or reorganization timeline. Evaluate reporting, budget monitoring, milestones, and sensitivity to delays or operating shortfalls.
A defined process. Clear responsibilities.
Establish the case context
Review the property, current operations, proposed budget, case milestones, and the financing objectives with the relevant parties and counsel.
Underwrite the funding plan
Test cash needs, collateral assumptions, funding duration, and repayment scenarios. Identify conditions that materially change the proposed financing.
Coordinate the approval path
Align financial materials and proposed terms with counsel’s documentation and approval process. Track the underwriting and transaction prerequisites.
Start with the property and the immediate issue.
An initial discussion establishes the situation, timing, and whether the proposed assignment fits. Supporting materials can follow through an agreed information-sharing process.
- Property summary and bankruptcy case information
- A short-term cash-flow forecast and proposed operating budget
- Existing debt, liens, cash-collateral arrangements, and relevant orders
- Requested financing, use of proceeds, case milestones, and proposed exit
How does DIP financing differ from ordinary bridge financing?
DIP financing involves credit obtained during a bankruptcy case. Its structure and approval process must be evaluated within that proceeding, including applicable Bankruptcy Code requirements and court orders.
Does DIP financing automatically receive a first-priority lien?
No. Priority and collateral protections depend on the financing structure, existing interests, applicable law, and any required court authorization. Counsel evaluates those requirements for the proposed transaction.
DIP opportunities are subject to underwriting, capital availability, documentation, and applicable court authorization. This page does not constitute a financing commitment or legal advice.
Property details drive the analysis.
Retail and shopping centers, hotels and hospitality, office buildings, and multifamily communities each carry different operating needs. The review accounts for tenancy, management, capital requirements, and the financing or legal issues affecting that asset.
Related capabilitiesPhotography illustrates property types and does not represent completed AGIMANO assignments.