Post-Petition Loan

Last Updated: Jun 7, 2019

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A Post-Petition Loan is one that is made after a company files for Bankruptcy. Post-petition borrowings are governed by section 364 of the Bankruptcy Code. Under section 364(c), after notice and a hearing, DIP financing may be approved that provides the lender with a super-priority administrative claim and with a lien on unencumbered property, or a junior lien on encumbered property.