The US Bankruptcy Court gave an order to Valeritas Holdings, Inc. to obtain DIP financing on an interim basis on February 14, 2020. As per the order, the debtor has been authorized to obtain a multi-draw term loan facility in the amount of $5.5 million out of the total financing of $12 million from HB Fund LLC. The DIP loan would carry an interest rate of 18% p.a. As per the terms of the DIP agreement, the loan carries a commitment fee of 12.5% of the interim commitment and 12% of the aggregate principal amount of the final commitment and origination fee of $0.2 million. The DIP facility would mature either on April 3, 2020 or the date which is thirty days following the entry of the Interim order (i.e. March 15, 2020) if the bankruptcy court has not entered the final order on or prior to such date or the date of the debtors’ receipt of notice of the acceleration of any of the DIP loans and the termination of the commitments to make the DIP loans resulting from the occurrence of an event of default or the date of substantial consummation of a confirmed plan of reorganization or the filing of a motion by the debtors seeking dismissal or conversion of cases, 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 $0.03 million towards trustee and $0.20 million towards unpaid estate professional fees and first priority lien upon and security interest in the debtor’s collateral. The final hearing has been scheduled for March 12, 2020.