The US Bankruptcy Court gave an order to Lithium Technology Corp. to obtain DIP financing on an interim and limited basis on February 2, 2015. As per the order, the debtor has been authorized to obtain a credit facility in the amount of $0.07 million out of 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 an 10% p.a. interest in the event of default.

The DIP facility would mature on 120 days after the petition date. 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 February 3, 2015.

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