The US Bankruptcy Court gave an order to AAC Holdings, Inc. to obtain DIP financing on an interim basis on June 23, 2020. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $25.5 million out of a total principal amount of $62.5 million from the DIP lenders with Ankura Trust Company, LLC acting as the administrative agent. The DIP loan would carry an interest rate of 18% (i) the portion of interest accruing at a per annum rate of 10% shall be payable in cash and (ii) the portion of such interest accruing at a per annum rate equal to 8% shall be payable in kind, along with an additional 2% p.a. interest in the event of default. The DIP facility would mature either on July 25, 2020 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.25 million towards unpaid professional fees retained by the Debtors and $0.03 million for professional retained by official committee and first priority lien upon and security interest in the debtor’s collateral. The Final Hearing shall take place on July 16, 2020.