The US Bankruptcy Court gave an order to Rooster Energy, Ltd. to obtain DIP financing on an interim basis on August 8, 2017. As per the order, the debtor has been authorized to obtain a secured revolving credit facility in the total amount of up to $1.96 million from Corn Meal, LLC. The DIP facility consists of Tranche A Loan in the amount of $0.59 million and Tranche B Loan in the amount of $1.37 million. The DIP facility further consists of Tranche C Loan in the amount of $0.05 million per month on a non-revolving basis. The maximum amount under Tranche C shall be in an amount to be determined by the Bankruptcy Court. The DIP loan would carry an interest rate of 6%. The DIP facility would mature either on the second anniversary of the DIP Credit Agreement i.e. July 2019, 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 $0.59 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The Tranche A Loans shall be used to fund payment of allowed Bankruptcy Expenses. The Tranche B Loans shall be used to fund payment of P&A Expenses and Lease Operating Expenses. The proceeds of the Tranche C Loans shall be escrowed until further order of the Court. The final hearing is scheduled for August 15, 2017. The DIP Lender is represented by Jones Walker LLP.