The US Bankruptcy Court gave an order to Capstone Green Energy Corporation to obtain DIP financing on an interim basis on October 2, 2023. As per the order, the debtor has been authorized to obtain a DIP notes in the amount of $18 million out of $30 million from Broad Street Credit Holding LLC with Goldman Sachs Specialty Lending Group, L.P. acting as the DIP agent. The DIP loan would either carry an interest rate of SOFR plus 8.5% p.a., with a SOFR floor of 1% p.a., or an alternate base rate plus 7.75% 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 a commitment fee of 2% p.a. The DIP facility would mature either on November 2, 2023, if final order not entered or 42 days after the petition date 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 $0.03 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The final hearing shall be scheduled for September 29, 2023.