When a client files for Chapter 11, access to liquidity becomes a critical factor in whether the case stabilizes—or unravels. From funding ongoing operations to satisfying urgent creditor demands, Debtor-in-Possession (DIP) financing can serve as a lifeline. But not all lenders are built for court scrutiny, and not all capital is structured to move at the pace of bankruptcy.
At Edgewater Lending, we specialize in DIP and exit financing tailored specifically to the needs of real estate owners navigating bankruptcy. We’ve worked directly with attorneys, trustees, and advisors to get deals structured, approved, and closed—often under aggressive court timelines.
What Is DIP Financing, and Why Is It Strategic?
DIP financing provides capital to debtors who have filed for Chapter 11 and are seeking to continue operations while restructuring. The financing is typically senior in priority and must be approved by the bankruptcy court.
For attorneys advising distressed clients, DIP loans offer a strategic advantage:
- Preserve value by avoiding asset fire sales
- Provide stability during reorganization
- Support confirmed plans or debtor-led 363 sales
- Prevent creditor-led outcomes that reduce control or upside
How Edgewater Structures DIP Capital with the Court in Mind
Bankruptcy is not one-size-fits-all, and DIP financing shouldn’t be either. Our approach is built around the legal and logistical realities attorneys and trustees face. We take the time to understand each case’s specific needs and coordinate with legal teams to ensure compliance, transparency, and speed.
What sets us apart:
- ✔ Court-aware structuring: We align our documents, terms, and timelines with what’s required for judicial approval.
- ✔ Real estate-focused underwriting: We evaluate equity, not just cash flow or sponsor credit.
- ✔ Speed: We’ve closed and funded loans in as little as 10–14 days post-approval.
- ✔ Attorney collaboration: We speak your language and stay aligned with your client’s legal roadmap.
Use Cases for DIP & Exit Financing
Attorneys and fiduciaries call us in for:
- Pre-confirmation DIP funding to keep a client in control of operations
- Exit financing to fund a confirmed Chapter 11 plan
- Bridge loans during or immediately after bankruptcy to pay off creditors or avoid litigation
- Time-sensitive capital to prevent loss of control, forced liquidation, or missed milestones
Whether you’re representing a property owner, small business, or real estate developer, our team works in tandem with counsel to ensure financing helps—not hinders—the case outcome.
Working with Edgewater
We’re not a fund that dips into distressed lending—we were built for it. That means we’re comfortable working in tight timeframes, under legal pressure, and with layered capital stacks. Most importantly, we’re collaborative partners to counsel, not just capital providers.
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If you’re advising a debtor in need of liquidity and time, we’re ready to step in quickly—and strategically.
