"Credit has gotten so tight in recent weeks that companies contemplating a bankruptcy filing can't find the cash needed to get through the process.
'It is a struggle, a real struggle to find DIP financing,' said Jonathan Henes, bankruptcy attorney at Kirkland & Ellis LLP in New York. 'In the old days, like early 2007, the banks would do an origination and syndication model, where hedge funds and [loan funds] would gobble up those loans, but they don't have the capital. They are out.'"
This article appeared in its entirety in the October 17, 2008 edition of The Wall Street Journal.