Tennenbaum Capital Partners, LLC, a a Santa Monica, California-based private investment firm focused on distressed investing, announced the third and final closing of Tennenbaum DIP Opportunity Fund, LLC, a $454m fund focused on debtor-in-possession (DIP) financing.
DIP financing is a special form of financing provided to assist companies under Chapter 11 bankruptcy protection. It is generally put into place at the beginning of bankruptcy cases to provide immediate working capital to allow a company to reorganize and restore vendor and customer confidence.
As stated by Howard Levkowitz, Managing Partner of TCP, the new vehicle will assist debtors with flexible loans that will provide sufficient time to restructure during the reorganization process.
The fund, which will lead, structure, agent and participate in DIPs and DIP refinancings, targets DIP loans of a minimum $10m.