The US Bankruptcy Court gave an order to Achaogen, Inc. to obtain DIP financing on a final basis on September 24, 2019. As per the order, the debtor has been authorized to obtain a credit facility in the amount of $25 million out of total facility of $25 million from Silicon Valley Bank consisting of $10 million to fund day-to-day operations and $15 million in rollup loans to satisfy in full the outstanding obligations under the prepetition term loan facility. The DIP loan would carry an interest rate of LIBOR plus 5.5% p.a., along with an additional 4% p.a. interest in the event of default. The DIP facility would mature either on September 30, 2019 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 / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The DIP proceeds will be used to pay outstanding prepetition loan obligations of $15 million. The remaining $10 million will be used in accordance with the budget for operating expenses.