Commercial Lending Solutions places debtor in possession financing, Section 363 sale acquisition capital, plan of reorganization exit loans, and receivership bridge financing for commercial real estate matters moving through Chapter 11, Chapter 7, and state court receivership. We work alongside bankruptcy attorneys, turnaround consultants, and restructuring advisors so that capital is available on the timeline the court and the case actually require, not the timeline a conventional lender would prefer. Every structure below is one we have placed inside an active case, not a hypothetical program.
Bankruptcy and receivership real estate financing is not conventional lending. Lenders underwrite court timelines, case posture, priming lien risk, and adequate protection requirements alongside the real estate fundamentals. Every situation below is one we have navigated inside an active case. If your client's situation does not fit a single category, call us. Complex bankruptcy and receivership financing structures are where we do our best work.
A commercial real estate debtor in possession needs post petition financing to fund carrying costs, tenant improvements, or completion of construction while the Chapter 11 case is pending. We place DIP facilities under Section 364, including priming liens under 364(d) where adequate protection for the existing lender can be demonstrated, structured to get before the bankruptcy judge on a timeline that keeps the case moving.
A buyer identified as the stalking horse or the successful bidder in a Section 363 sale needs financing that can close on the court ordered timeline, often 30 to 45 days from sale order to closing. We place acquisition financing structured around the 363 sale process, understanding that free and clear title under Section 363(f) and the sale order itself are what the lender underwrites, not a conventional purchase agreement.
The plan of reorganization has been confirmed or is headed toward confirmation, and the debtor needs exit financing to fund plan payments, refinance DIP debt, or provide the exit capital the plan itself requires as a condition of confirmation. We place exit financing sized to the confirmed plan terms and coordinated with the plan's effective date deadline.
A secured lender or its counsel is evaluating whether a proposed DIP facility improperly primes its existing lien, or is negotiating adequate protection payments, replacement liens, or a carve out in a contested DIP hearing. We help creditor side counsel and their clients understand market DIP terms so the adequate protection package that gets negotiated reflects what comparable cases have actually produced.
A single asset real estate debtor under Section 362(d)(3) faces the statutory 90 day clock to file a viable plan or begin making interest payments to its secured lender. We place refinancing and bridge capital that lets a single asset real estate debtor meet that deadline, either by refinancing the secured lender's claim outright or by funding the adequate protection payments needed while a sale or plan process runs its course.
A state court has appointed a receiver over distressed commercial real estate, and the receiver needs financing to fund deferred maintenance, tenant improvements, or a refinancing that pays off the underlying debt as part of a court approved sale or restructuring. We work directly with court appointed receivers and their counsel, understanding that receivership financing requires court approval and a lender comfortable with the appointment order as the operative authority rather than a conventional borrower.
A Chapter 7 trustee has real estate to liquidate and needs a buyer who can close quickly, often against a hard deadline set by the trustee's motion to sell free and clear of liens. We place acquisition financing for buyers in trustee sales, understanding that trustee sales typically move faster and with less diligence flexibility than a conventional acquisition.
A company has emerged from Chapter 11 with a confirmed plan and needs to refinance exit financing or DIP to exit facilities into conventional, longer term capital once the case has closed and operating performance has stabilized. We place permanent and bridge financing for post emergence borrowers, understanding that lenders will look closely at the confirmed plan terms, post confirmation operating history, and the discharge injunction before underwriting.
Most commercial mortgage brokers have never read a DIP motion, and most bankruptcy lenders are not commercial real estate lenders. We sit at the intersection of both, which is why our financing gets approved by the judge and closes on the timeline the case actually requires.
We understand the difference between financing under Section 364(a), unsecured administrative priority, 364(c), superpriority status and liens on unencumbered property, and 364(d), a priming lien over an objecting secured creditor's existing lien. We structure DIP proposals with the adequate protection package, whether replacement liens, periodic payments, or a carve out, that gets a contested priming motion approved rather than continued.
A Section 363 sale order, a plan confirmation deadline, or a single asset real estate case's 90 day clock does not wait for a 45 day conventional loan process. We have closed DIP facilities, exit financing, and acquisition loans on timelines dictated by the bankruptcy court's calendar, and we tell you upfront whether a lender can realistically meet the date on your motion.
Most commercial real estate lenders decline anything touching an active bankruptcy case. We maintain direct relationships with private credit funds, bridge lenders, and special situations capital sources who specifically underwrite DIP, exit, and receivership financing, and who do not require a lengthy internal approval process to get comfortable with a debtor in possession borrower.
We do not represent any party to the bankruptcy case and we are not retained by the estate to place financing on the debtor's, buyer's, or receiver's behalf. Our compensation comes from the closing of the financing, not from the estate, which keeps us outside the retention and fee application process that governs professionals employed under Section 327.
Single asset real estate cases and state court receiverships each carry their own statutory deadlines, court approval requirements, and lender expectations that differ from a standard Chapter 11 reorganization. We place financing for both structures regularly and know which lenders will fund a receiver's certificate or a single asset real estate cash collateral resolution without treating the case as a disqualifying red flag.
Bankruptcy financing timelines move around hearing dates, objection deadlines, and orders that can shift a closing date by weeks. We provide consistent updates on where financing stands relative to the case calendar, so you are never explaining to the judge or your client why financing is not ready when it needs to be.
We have designed the referral process to be as straightforward as possible for you and your client. You make the introduction. We assess the case posture and capital need, engage your client directly, and keep you informed through every hearing until closing.
Send an email to loans@clscre.com or call 310.708.0690 and tell us the case posture in plain terms. We do not need a full motion or a completed first day pleadings package to start. Tell us the chapter, the case stage, whether this is DIP, exit, a 363 sale, or a receivership, the asset type, and the timeline the court has set, and we will tell you quickly whether we can help and what the realistic financing path looks like.
We work directly with your client to gather the financials, the docket items relevant to financing, and the real estate due diligence a lender will need. We structure the presentation for lenders who specifically fund bankruptcy and receivership situations, and we provide regular status updates so you always know where financing stands relative to the next hearing or deadline.
Your client gets the capital needed to meet the case's timeline, whether that is a DIP facility, a 363 sale closing, exit financing, or a receivership refinancing. You get a referral partner for future matters, at no cost to you or your client. We are compensated by the borrower, buyer, or receiver at closing, and we do not share fees with counsel or any non-licensed party in connection with the referral.
DIP pricing depends heavily on priority and collateral position. A junior DIP facility secured by a priming lien under Section 364(d) typically prices meaningfully higher than a facility secured by unencumbered collateral or granted superpriority administrative status under Section 364(c). For most commercial real estate DIP facilities we place, expect a rate in the low double digits, an origination or commitment fee, and often an exit fee payable at plan confirmation or DIP repayment.
Timeline runs on two tracks. An interim DIP order can typically be obtained at the first day hearings, often within days of filing, sized to fund only what is necessary to avoid immediate harm to the estate. The final DIP order, covering the full facility amount, usually follows three to four weeks later after any objection period and a final hearing. We structure facilities to fund what the interim order allows immediately, with the balance available once the final order enters.
The larger driver of timeline is not the lender, it is getting the motion drafted, noticed, and heard. We work around your firm's filing timeline and structure our term sheet to match what a judge is likely to approve on an interim basis without objection.
Section 364(d) sets a two part standard. The debtor must show it cannot obtain the financing it needs on any other basis, meaning it cannot obtain unsecured credit under 364(b) or superpriority credit under 364(c) on acceptable terms, and it must show the existing lienholder's interest is adequately protected despite being primed.
Adequate protection in a priming fight typically takes the form of an equity cushion analysis, replacement liens on other estate property, periodic payments, or a combination of the three. Courts give the debtor's business judgment real deference on whether the DIP terms are reasonable, but the adequate protection showing is where priming fights are actually won or lost. Valuation is almost always contested, since the size of the equity cushion depends on what the real estate is worth.
We help debtor's counsel understand what adequate protection packages have gotten approved in comparable cases and what a market DIP facility actually costs, so the motion reflects realistic terms rather than terms that invite a drawn out objection.
We are compensated by the borrower, buyer, or receiver at closing of the financing we place. We do not pay referral fees to attorneys, and we do not share fees with any non-licensed party in connection with a referral. That structure is intentional, it keeps the referral relationship clean of the fee splitting issues that create bar rule problems for counsel.
Whether our involvement needs to be disclosed to the court depends on the posture of the case, not on us. If your client is the debtor in possession and the financing is being approved as part of a DIP motion, the DIP lender and its terms are disclosed to the court as a matter of course, but CLS CRE as the broker arranging that financing is not a professional retained by the estate under Section 327 and does not require separate retention. If a specific judge or United States Trustee's office in your district wants broker compensation disclosed, we will provide whatever documentation is requested.
If your engagement letter or local rules require you to disclose referral relationships to your client, we are glad to put our compensation structure in writing so you have something concrete to attach.
Yes, but it depends on getting the lender engaged before the sale hearing, not after the buyer wins the auction. We work with prospective bidders as soon as they identify a target, so a financing commitment is in hand or nearly finalized by the time the bid procedures order sets the sale hearing date.
Lenders financing a 363 sale underwrite the sale order itself, since Section 363(f) free and clear title is what makes the asset financeable, along with the same real estate fundamentals they would underwrite in a conventional acquisition. What they will not do is start underwriting from zero after overbid procedures conclude and expect to close on the court's timeline. If a buyer waits until after winning the auction to start the financing conversation, closing in 30 days becomes a real risk to the deposit.
We tell bidders early whether their target closing timeline is realistic given the asset and the lender universe available, so nobody is surprised by a financing contingency they cannot meet.
Yes. Receivership financing operates under state law and the receivership order rather than the Bankruptcy Code, which changes both the mechanics and the lender pool. The receiver's authority to borrow, grant liens, or issue a receiver's certificate comes from the appointment order itself, so the first thing any lender wants to see is the specific language in that order authorizing borrowing and defining its priority.
A receiver's certificate can be granted priority over existing liens in many states, conceptually similar to a priming DIP lien in bankruptcy, but the standard for obtaining that priority and the case law governing it varies significantly by state and by court. We work with receivers and their counsel to understand what a given court is likely to approve before a lender term sheet is negotiated, rather than after.
The lender pool for receivership financing is narrower than for conventional real estate lending, since most conventional lenders decline anything with a court appointed fiduciary as borrower. We maintain relationships with the private credit and special situations lenders who specifically underwrite receiver's certificates and receivership authorized borrowing.
For bankruptcy attorneys, turnaround consultants, restructuring advisors, receivers, and their clients working through Chapter 11, a Section 363 sale, or a state court receivership, contact Trevor Damyan directly. No forms, no gatekeepers. Tell us the case posture and we will tell you what the financing options look like.