Distressed DIP Financing & Restructuring Runway Planner

Financing & Burn Levers

13-Week DIP Model

Committed DIP Rescue Loan $10.0M

Total rescue capital committed by private equity sponsor or lender syndicate.

Emergency Day-1 Draw 40% ($4.0M)

Immediate emergency draw upon interim order approval.

Pre-Petition Unencumbered Cash $1.2M

Actual liquid reserves in debtor bank accounts at petition date.

Weekly Operating Inflows $0.35M / wk

Continuing operational cash collections (tickets, retainers, broadcast, SaaS).

Weekly Baseline Operating Burn $0.95M / wk

Payroll, facilities, vendor critical disbursements, event staging costs.

Carve-Out (Legal & Advisor Escrow) $1.8M

Superpriority professional fee reserve required by bankruptcy court order.

Milestone Final Draw (Week) Week 6 (Remaining 60%)

Week when court enters final DIP order and unlocks second tranche.

Ready: 13-week forecast generated.

Cash Runway & Liquidity Trajectory

Runway: 13+ Weeks (Viable Relaunch)

Projected Runway

13+ wks

Through emergence target

Lowest Cash Cushion

$2.40M

Trough at Week 5

Avg Net Weekly Burn

-$0.60M

Op Burn minus Inflow

Total DIP Deployed

$10.0M

100% of commitment

13-Week Ending Liquidity vs Carve-Out Floor

Ending Liquid Cash Carve-Out Floor (Minimum Reserve) DIP Tranche Injection

Week	Phase / Key Milestone	Starting	DIP Inflow	Revenues	Disbursements	Ending Cash	Status

Restructuring Memorandum: Export court-ready 13-week liquidity schedule & sensitivity analysis.

1. Why DIP Rescue Loans Matter

When an ambitious venture like LIV Golf or a major broadcast league enters distress, lenders and vendors freeze credit. A Debtor-in-Possession (DIP) loan provides superpriority liquidity so the debtor can stage events, pay critical athletes or employees, and reassure stakeholders that the enterprise is committed to relaunching rather than liquidating under Chapter 7.

2. The Administrative Carve-Out

Bankruptcy courts mandate that secured lenders carve out a non-waivable cash escrow for debtor counsel, financial advisors, and U.S. Trustee quarterly fees. If ending unencumbered cash drops below this reserve floor, creditors can petition to convert the case or cut off borrowing authority.

3. Interim vs Final Order Tranches

Courts rarely approve a full $10M+ facility on Day 1. The debtor receives an initial interim draw (typically 30–50%) to stabilize operations for 4 to 6 weeks, while the remaining balance is tied to a final hearing, budget compliance covenants, and sponsor reorganization milestones.