The US Bankruptcy Court gave an order to HyreCar, Inc. to obtain DIP financing on a final basis on March 20, 2023. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $5 million from Holmes Motors Inc. The DIP loan would carry an interest rate of 6% p.a., along with an additional 4% p.a. interest in the event of default. The DIP facility would mature either on May 10, 2023, i.e., 71 days after interim order or on the effective date of the plan or on the date of consummation of the sale of substantially all assets or the acceleration of the DIP loan, including, without limitation, because of the occurrence of an event of default., 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 towards unpaid professional fees / administrative expenses and priority lien upon and security interest in the debtor?s collateral. The proceeds of the DIP Loan shall be used solely to pay working capital needs of the debtor and pay professional fees and expenses of the debtor identified in the budget. The lender is represented by Rob Isham of Croke Fairchild Duarte & Beres LLC and Chris Mehring of Goldstein & McClintock LLLP as legal advisors.