Debtor-in-possession (DIP) financing is one of the most important building blocks of a Chapter 11 bankruptcy case. The recent economic downturn, however, has frozen the DIP financing market. Absent the financing necessary to reorganize, many companies will be forced to liquidate. Who will fill the void in DIP financing as banks exit the market? This note seeks to explore alternative options—local banks, the government, and private equity or hedge funds—that may fill the vacuum left by the banks, and the risks and rewards associated with DIP financing. As these alternate institutions go forward, the landscape of DIP financing may forever change, with not only increasing risk of loan default and inflationary concerns, but also the opportunity to profit.

In few areas of law does mediation provide as many benefits as it does in bankruptcy. Pushed by a drastic increase in the amount of bankruptcy filings, the need to streamline bloated dockets, and hopes of reducing the increasingly high cost of bankruptcy litigation has forced bankruptcy judges and attorneys to seek out and employ various methods of alternative dispute resolution. If used correctly, alternative dispute resolution can reduce the strain on both the over-burdened court system and litigants’ monetary bottom-line by providing fast and inexpensive ways to avoid traditional bankruptcy litigation. This paper provides a practical roadmap for practitioners on how to successfully navigate bankruptcy mediations and settlement conferences, utilizing the experience of a bankruptcy mediator, bankruptcy judges, and bankruptcy practitioners.