The US Bankruptcy Court gave an order to Sequential Brands Group, Inc. to obtain DIP financing on an interim basis on September 2, 2021. As per the order, the debtor has been authorized to obtain a term loan credit facility in the amount of $141.5 million out of $150 million from DIP lenders with Wilmington Trust, National Association acting as the administrative agent. The DIP loan would either carry an interest rate of LIBOR plus 5% p.a., with a LIBOR floor of 1% 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 an upfront fee of 2% p.a., which is allocated as 0.5% payable on the date the DIP facility transaction closes and 1.5% payable on maturity date. The DIP facility would mature either on January 28, 2021 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 $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The final hearing shall be occurred on September 24, 2021.