The US Bankruptcy Court gave an order to Orchids Paper Products Company to obtain DIP financing on an interim basis on September 3, 2019. As per the order, the debtor has been authorized to obtain a DIP loan facility in the total amount of $11 million, from Orchids Investment LLC with Black Diamond Commercial Finance, L.L.C acting as the administrative agent. The DIP loan would carry an interest rate of alternate base rate plus 12% p.a., along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries a commitment fee of 5% p.a. The DIP Facility will terminate upon the Facility Termination Date, which means September 30, 2019, or any earlier date on which the Aggregate Commitment is reduced to zero or otherwise terminated pursuant to the terms of the DIP Credit Agreement. 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 not exceeding of $0.50 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral.