High fees and interest rates have also helped to tempt some lenders into the debtor-in-possession market.

ECONOMIST: Bankruptcies can be a beginning, not always an end

The government has also dipped its toes into Debtor-In-Possession financing through its bailouts of Chrysler and General Motors.

FORBES: The War For U.S. Capital Markets

"No one else could have provided the debtor-in-possession financing" to allow the companies to emerge from bankruptcy, he said.

WSJ: Romney Wins in Michigan, Arizona

Borders is nearing a deal for so-called debtor-in-possession financing, which would keep the company operating in bankruptcy, the people said.

WSJ: Borders Nearing Bankruptcy Filing

If UAL can't meet the timetable, then debtor-in-possession lenders Bank One, J.

FORBES: Deathwatch

The financing will be used to repay all claims under the debtor-in-possession post-petition credit facility, pay certain settlement and cure payments and fund ongoing operations.

FORBES: Hawker Beechcraft Emerging From Bankruptcy But Court Delays Final Decision

In America, debtor-in-possession financing, which helps firms that have entered Chapter 11 bankruptcy protection to meet their cash needs while they reorganise, has dried up.

ECONOMIST: Corporate lending

Their first and most important fight will be over debtor-in-possession financing.

FORBES: Frank McCourt Is Taking A Big Risk With Dodgers Bankruptcy Filing