The US Bankruptcy Court gave an order to Musclepharm Corporation to obtain DIP financing on an interim basis on January 9, 2023. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $12 million out of which $1 million on interim basis from White Winston Select Asset Funds, LLC with Empery Tax Efficient, L.P. The DIP loan would either carry an interest rate of prime rate plus 2% p.a. As per the terms of the DIP agreement, the loan carries a Closing Fee of 1% p.a., facility fee of 0.5% and exit fee of $0.13 million. The DIP facility would mature either on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier.

The proceeds of DIP financing would be used to pay payroll, insurance, product labeling and other reasonable and necessary operational expenses.