DIP Financing in Business Bankruptcy Proceedings


Experienced bankruptcy practitioner and litigator Norman Kinel has represented debtors, creditors, equity holders and official committees in numerous complex Chapter 11 cases involving multiple parties. Norman Kinel, a registered mediator for the U.S. Bankruptcy Courts for the Southern District of New York and the District of Delaware, has considerable expertise in the use of debtor-in-possession (DIP) financing in bankruptcy proceedings.

DIP financing is one option available to companies undergoing Chapter 11 proceedings. DIP financing is a court-approved finance plan that can fund the operations of a financially distressed company as it goes through the Chapter 11 process. DIP financing usually takes the form of fully funded term loans.

If DIP financing is approved, customers and vendors can continue to extend credit to the company with a high degree of confidence that they will be paid for their products or services during the bankruptcy proceedings.

Many financially distressed companies have obtained approval for DIP financing. In May 2018, iconic guitar maker Gibson secured $135 million in DIP financing to continue its operations. The DIP loan will keep the company in business, potentially until 2019, as its Chapter 11 filing proceeds.

Turnaround Management Association


Turnaround Management Association  pic

Turnaround Management Association
Image: turnaround.org

An accomplished bankruptcy attorney in New York City, Norman Kinel brings more than three decades of experience to his corporate bankruptcy practice across a range of industries. In addition, Norman Kinel is a member of the Turnaround Management Association (TMA).

Founded in 1988, TMA emerged from regular meetings held by turnaround practitioners at the nonprofit Kenan Institute of Private Enterprise. Since its official incorporation, TMA has expanded into a global organization of turnaround professionals with more than 8,000 current members in over 50 countries.

TMA serves its members through continuing education opportunities, research publications, and networking and professional development events. Since 2013, TMA has also maintained a certification program.

Designed to provide additional distinction and objective standards of professional qualifications, the TMA certification program offers two separate credentials, the Certified Turnaround Professional (CTP) and the Certified Turnaround Analyst (CTA). The CTP credential is reserved for veteran turnaround practitioners, while the CTA designation is for emerging professionals working toward the CTP or non-practitioners who simply want to learn more about the field.

ABI Looks at Puerto Rico’s Economy


American Bankruptcy Institute. pic

American Bankruptcy Institute
Image: abi.org

Norman Kinel is a New York-based attorney who is a partner at Squire Patton Boggs (US) LLP, specializing in bankruptcy law. In addition to his work with clients, Normal Kinel is active in the restructuring field through membership in the American Bankruptcy Institute.

A recent podcast by the American Bankruptcy Institute examined the ongoing economic recovery of Puerto Rico in the wake of Hurricane Maria’s devastation. A panel of experts discussed how the influx of relief funds may be creating a false picture of the island’s economic conditions, as the true driver of its long-term growth is the development of a sound investment environment rather than a short-term infusion of cash.

Tax cuts aimed at helping businesses probably aren’t the answer, according to Professor Andrew Wolf of American University. Instead, he believes labor reform and a more significant investment in the tourism sector–typically a main economic driver in island nations–would be a better place to start, especially since Puerto Rico’s tourism industry currently only accounts for 6 percent of its total gross national product.