Stabilization Capital in Court-Supervised Environments
When a company enters a court-supervised restructuring process, liquidity becomes both fragile and strategic. Debtor-in-Possession (DIP) financing is not conventional capital. It is stabilization capital — structured to preserve enterprise value, protect stakeholders, and create a viable path forward under judicial oversight.
Equis Capital Finance advises sponsors, boards, insolvency professionals, and court-appointed officers on the structuring and placement of DIP facilities in both Canadian and cross-border proceedings.
Equis Capital Finance advises sponsors, boards, insolvency professionals, and court-appointed officers on the structuring and placement of DIP facilities in both Canadian and cross-border proceedings.
What DIP Financing Requires
DIP capital operates within a highly controlled legal framework. It must satisfy:
- Court approval requirements
- Super-priority lien considerations
- Intercreditor alignment
- Cash flow viability during restructuring
- Credible exit or recapitalization strategy
This is not transactional lending. It is risk-adjusted, legally structured capital deployed under strict procedural scrutiny.
Our Advisory Mandate
Equis acts as a capital structuring advisor and placement intermediary. Our role includes:
- Assessing restructuring viability and liquidity runway
- Structuring interim stabilization facilities
- Coordinating with insolvency counsel and court officers
- Negotiating priority positions and security frameworks
- Sourcing specialized DIP lenders and special situations funds
- Designing post-emergence refinancing or recapitalization strategies
We operate in alignment with legal advisors and financial monitors to ensure the capital structure supports judicial requirements and preserves enterprise value.
Typical Use Cases
- CCAA or Chapter 11 proceedings
- Bridge liquidity during restructuring
- Operational stabilization in distressed environments
- Asset preservation pending sale or recapitalization
- Structured wind-downs requiring controlled liquidity
Capital Structures
Facilities may include:
- Super-priority senior secured DIP loans
- Roll-up structures
- Staged draw facilities tied to restructuring milestones
- Hybrid DIP-to-exit financing structures
- Integrated debt and preferred equity solutions
All pricing, terms, and priority structures are determined by risk profile, collateral integrity, and restructuring visibility.
Institutional Discipline
DIP capital is selective. Not all distressed situations are financeable. Viability depends on:
- Transparent financial reporting
- Credible turnaround plan
- Defined collateral base
- Cooperative stakeholder environment
- Legal clarity and court support
Equis evaluates each mandate on a disciplined, risk-adjusted basis before engagement.
Engage Equis
In distressed environments, speed and structure determine survival. Capital must align with the court process, not work against it.
If your company is navigating a restructuring and requires stabilization capital, Equis Capital Finance can assess viability and structure a disciplined DIP financing strategy.