Priming loan

Priming loan,

Definition of Priming loan:

  1. Type of loan obtained by a company in Chapter 11 bankruptcy. A priming loan has tight restrictions. Typically, the borrowed funds may be used only to keep a company functioning until it can return to solvency. Existing lenders may have a say in the terms of a priming loan because repayments on the priming loan will take precedence over payments on other debts.

Meaning of Priming loan & Priming loan Definition