The US Bankruptcy Court gave an order to Charge Enterprises, Inc. to obtain DIP financing on an interim basis on March 12, 2024. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $4 million out of the aggregate $10 million from AI Amped I, LLC also acting as the administrative agent. The DIP loan would either carry an interest rate of SOFR plus 10% p.a., along with an additional 5% 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., and an exit fee of 3.00% of the principal amount of the aggregate commitment. The DIP facility would mature either on May 31, 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 $0.25 million towards unpaid professional fees / administrative expenses and priority lien upon and security interest in the debtor?s collateral.

The proceeds of DIP financing would be used to fund their working capital needs and for other general corporate purposes, and pay related transaction costs, fees, liabilities, and expenses. The final hearing is scheduled for April 8, 2024.