The US Bankruptcy Court gave an order to Cache, Inc. to obtain senior secured superpriority post petition financing on an interim basis on February 5, 2015. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $9.53 million out of $22 million from Salus Capital Partners, LLC, also acting as the administrative and collateral agent pursuant to DIP agreement dated February 4, 2015. The DIP loan would carry an interest rate of LIBOR plus 5.50% p.a., along with an additional 3% p.a. interest in the event of default.

The initial interest rate under the DIP Loan is anticipated to be 7.50%. As per the terms of the DIP agreement, the loan carries a commitment fee of 0.35% times the actual daily amount. The closing fee would be of $0.30 million and maintenance fee of $0.12 million shall be paid on closing date.

The DIP exit fee wiil be in the amount of $0.20 million. The DIP facility would mature either on February 4, 2016 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 $0.20 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.

The proceeds of DIP financing would be used to fund the debtor's operations during the Chapter 11 cases, working capital requirements and general corporate purposes. The final hearing on DIP obligation is scheduled for February 23, 2015.