The US Bankruptcy Court gave an order to Acorda Therapeutics, Inc. to obtain DIP financing on an interim basis on April 5, 2024. As per the order, the debtor has been authorized to obtain a term loan facility in the amount Up to $60 million with GLAS USA LLC acting as the administrative agent. The DIP loan would either carry an interest rate of 10.5% per annum., along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a commitment fee of 2 bps. The DIP facility would mature either on 29 days i.e. before final order or 180 days i.e. September 28, 2024, after the petition date May 4, 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 of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.