The US Bankruptcy Court gave an order to GWG Holdings, Inc. to obtain DIP financing on an interim basis on April 23, 2022. As per the order, the debtor has been authorized to obtain a term loan credit facility in the amount of $10 million out of $65 million from DIP lenders with National Founders LP acting as the administrative agent. The DIP loan would either carry an interest rate of SOFR plus 10% p.a., with a term SOFR floor of 1% p.a. and 0.11448% p.a., or an alternate base rate shall at no time be less than 1% plus applicable rate of 9% p.a. The DIP facility would mature either on October 20, 2022, 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 Trustee fees and $1.5 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 May 23, 2022.