The US Bankruptcy Court gave an order to Alpine Summit Energy Partners, Inc. to obtain DIP financing on an interim basis on July 10, 2023. As per the order, the debtor has been authorized to obtain a senior secured post-petition financing in the amount of $16 million from Bank7. The DIP loan would either carry an interest rate of Prime Rate + 2% per annum., along with an additional 15% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a commitment fee of 1% p.a. The DIP facility would mature either 115 days after the Petition Date or on the effective date of the plan or the date of termination of the commitments, case conversion or dismissal, 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 and first priority lien upon and security interest in the debtor?s collateral.