A Common-Sense Assessment of
By Elliot Ganz and Allison Hester-Haddad
Recent articles have lamented the proliferation of “onerous” provisions in debtor-in-possession
loans. The authors, based on a study of empirical data, demonstrate that such “extraordinary
provisions”, while more common, do not negatively impact the ability of debtors to preserve
going-concern value. On the contrary, the DIP loan market rose to the challenges presented
by the worst downturn in generations.