The US Bankruptcy Court gave an order to Appgate, Inc., to obtain DIP financing on an interim basis on May 9, 2024. As per the order, the debtor has been authorized to obtain a term loan credit facility in the amount of $18 million out of it $8 million on interim basis with U.S. Bank Trust Company, National Association acting as the administrative agent. The DIP loan would either carry an interest rate of 8% p.a., along with an additional 2% p.a. interest in the event of default.

The DIP facility would mature either if the final order has not been entered, 45 calendar days after the petition date i.e. June 20, 2024 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 towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The final hearing is scheduled for June 17, 2024.