The US Bankruptcy Court gave an order to Aradigm Corporation to obtain DIP financing on June 6, 2019. As per the order, the debtor has been authorized to obtain a senior secured, super-priority debtor-in-possession new money revolving credit facility in the amount of $2 million from 21 April Fund Ltd. and 21 April Fund LP. The DIP loan would carry an interest rate of Base rate plus 3% p.a., with a base rate will be the highest of (a) 1% and (b) the prime rate as published in the Money Rates Section or column of The Wall Street Journal, along with an additional 3% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries a facility fee of 2% of the aggregate commitment. The DIP facility would mature either on January 31, 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 $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral.