The US Bankruptcy Court gave an order denying American Spectrum Realty Inc. to obtain DIP financing on June 18, 2015. The motion for obtaining DIP finance was filed by the debtor on June 12, 2015. As per the motion, debtor was seeking to obtain secured DIP facility in the amount of $0.5 million from Mark Gleicher, with authority to borrow an additional $0.35 million on the same terms and conditions.

The DIP loan would carry an interest rate of 8% 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 Origination Fee of 2% to be paid to D&A Daily Mortgage Fund III, L.P., D&A Semi-Annual Mortgage Fund III, L.P. and/or D&A Intermediate Term Mortgage Fund III, L.P. The DIP facility would mature either on December 31, 2015, or dismissal of the Debtor's Chapter 11 bankruptcy case, or conversion of the Bankruptcy Case to Chapter 7, whichever is earlier. The DIP Loan shall be secured by a blanket lien on the Debtor's assets, which are otherwise unencumbered.

The DIP proceeds were to fund debtor's business operations including, but not limited to, payroll, rent, and insurance.