Debtor in Possession (DIP)

When filing chapter 11 bankruptcy, it is not uncommon for the reorganization structure to allow the company to retain possession of property, especially factories, warehouses, trucks, or other property that is essential for the company’s business operations. Although they are technically owned by the creditors, the trustee assigned to oversee the company’s compliance with the reorganization will often allow for these property assets to continue to be used and remain in their physical possession, resulting in a "Debtor in Possession" scenario.

The DIP can continue regular use of the property, but must obtain approval from the court for any application outside of the designated scope of activities.

The analogy is not unlike in Tomb Raider, when Lara Croft assumed ownership of her father’s company while letting her nemesis continue to run operations, unaware that Lara was now watching every new activity.