The US Bankruptcy Court gave an order to Pareteum Corporation, to obtain DIP financing on an interim basis on May 18, 2022. As per the order, the debtor has been authorized to obtain a super priority priming new money multi-draw term loan facility up to $6.0 million, with up to $3.0 available for borrowing on interim basis from Circles MVNE Pte. Ltd and also acting as the administrative agent.

The DIP loan would either carry an interest rate of 9% 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 0.5% p.a., an upfront fee of 2% of the aggregate principal amount and an exit fee of 1.5% of the aggregate principal amount. The DIP facility would mature either on 210 days after the closing date or the close of the sale of the business and assets of the borrowers pursuant to an order of the bankruptcy court or the acceleration of the maturity of the loans and the termination of the commitments following an event of default, 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 $0.05 million towards unpaid trustee fees, carve out of $0.3 million towards professional fees / administrative expenses, carve out of $0.1 million towards statutory committees and first priority lien upon and security interest in the debtor's collateral. The final hearing to consider entry of the final order and approval is scheduled for June 7, 2022. The proceeds of the DIP financing will be used to pay expenses (including the costs of the administration of the chapter 11 cases (including professional fees and expenses)) of the borrowers of the types, and in the amounts, as provided the budget and to make adequate protection payments in respect of the prepetition obligations.