Lenders can still trust bankrupt company. They can see what we do not see. They know whether a failed company can emerge from a certain bankruptcy or not. Obviously, there are stronger companies who can still survive the bankruptcy.
Debtor in Possession is a specialized area because lenders are taking risk for this. Those who are specializing in this area enjoy the highest level of security over the assets they are temporarily financing.
The concept of Debtor in Posession financing is that the lender is given a super priority security on the assets of the firm. With this type of financing, the interest is often a bit higher than the conventional financing option.
Failed businesses can still reemerge with DIP financing, but there is a large amount of money at risk. That is where you can play with your strategy. DIP lenders know their specialization area and they know how to play the game.