lien priming
Date: Thu, 01/27/2011 - 21:55
Can anybody tell me about lien priming in bankruptcy?
Hi! Welcome to the forums! It basically refers to debtor-in-pos
Hi!
Welcome to the forums!
It basically refers to debtor-in-possession financing. When an individual tries to discharge his business debts by reorganizing them, he often needs money. There are some lenders who agree to lend money to the business debtors. Lien priming occurs when DIP lender is put at the same level of the already existing lien.
The concept of lien priming is common in case of Chapter 11 bank
The concept of lien priming is common in case of Chapter 11 bankruptcy as this chapter of bankruptcy deals with business debts.
