The US Bankruptcy Court gave an order approving the amendments to DIP financing agreement for Musclepharm Corporation on January 23, 2023. As per the order, the debtor has been authorized to obtain a revolving credit facility in an additional amount of $0.5 million from White Winston Select Asset Funds, LLC with Empery Tax Efficient, LP. The total DIP financing obtained by the debtor would now be in the amount of $12.5 million.

The DIP loan would either carry an interest rate of prime rate plus 2% p.a. The DIP facility would mature either on December 31, 2023 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets or the date all DIP Notes become due and payable, 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 $0.5 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.