The US Bankruptcy Court gave an order to Lithium Technology Corp. to obtain DIP financing on an interim basis on May 1, 2015. As per the order, the debtor has been authorized to obtain a second-priority secured, super-priority credit facility in the amount of $0.06 million from total facility of $0.40 million from August Fortune (BVI) Ltd. The DIP loan would carry an interest rate of 3.5% p.a., and 10% p.a. interest in the event of default.

The DIP facility shall be effective as of the date DIP financing agreement is approved by the Court and shall continue in full force and effect until such time as the debtor's loan with lender has been paid in full. 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 $0.03 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. Final hearing is scheduled for May 7, 2015.

Theodore Maloney of Richardson & Maloney LLP acted as legal counsel for the lender.