The US Bankruptcy Court gave an order to Response Genetics, Inc. to obtain DIP financing on an interim basis on August 11, 2015. As per the order, the debtor has been authorized to obtain a term loan in the amount of $16.25 million from SWK Funding LLC, Swiftcurrent Partners LP, and Swiftcurrent Offshore Master Ltd. with SWK Funding LLC acting as the administrative agent. The borrowing shall be provided as $1.3 million through 17 days after the petition date, $0.20 million from the 18th to the 26th date, $0.50 million from the 27th to the 35th date and $1 million from the 36th to the 60th date.

The DIP loan would carry an interest rate of LIBOR plus 12.5% p.a., along with an additional 2% p.a. interest in the event of default. The DIP facility would mature either after 60 days from the petition date or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, 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 $0.10 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.

The DIP proceeds shall be used to fund post petition operating expenses, to pay interest, fees and expenses to SWK Funding LLC, pre petition claims and other Chapter 11 administration costs and expenses. The final DIP hearing is scheduled for August 27, 2015.