The US Bankruptcy Court gave an order to IronNet, Inc. to obtain DIP financing on an interim basis on October 16, 2023. As per the order, the debtor has been authorized to obtain a term loan in the amount of $4.5 million from ITC Global Advisers LLC. The DIThe US Bankruptcy Court gave an order to IronNet, Inc. to obtain DIP financing on an interim basis on October 16, 2023.

As per the order, the debtor has been authorized to obtain a term loan in the amount of $3 million, out of the total financing of $10 million, from ITC Global Advisers LLC. The DIP loan would carry a PIK interest rate of 16% 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 agency fee of $0.30 million.

The DIP facility would mature on the date which is 180 days after the petition date i.e., April 9, 2024, or the effective date of any chapter 11 plan confirmed in any of the chapter 11 cases, the entry of an order for the dismissal or conversion to chapter 7 of any of the chapter 11 cases, the closing of a sale of all or substantially all assets or equity of the loan parties, the date of any Event of Default under the DIP Credit Agreement or any of the DIP Documents and the election of the DIP Facility Agent to terminate the DIP Facility commitments following such Event of Default and the expiration of all applicable notice and cure periods, 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 and first priority lien upon and security interest in the debtor?s collateral. Final hearing shall be held on November 14, 2023.

The proceeds of DIP financing shall be used to pay fees, interest, and expenses associated with the DIP facility, to fund, to the extent that usage of cash collateral and available cash are not sufficient to cover such expenses, post-petition operating expenses and working capital needs of the Debtors, including, but not limited to, those activities required to remain in, or return to, compliance with laws, to fund fees and expenses incurred in connection with the restructuring, provide for the ongoing working capital and capital expenditure needs of the debtors during the pendency of these chapter 11 cases, to pay permitted pre-petition claim payments authorized by this court, to pay professional fees in connection with these chapter 11 cases; and fund the costs of the administration of these chapter 11 cases.P loan would carry an interest rate of 16% p.a., along with an additional 2% p.a. interest in the event of default. The DIP facility would mature on October 31, 2023 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 and first priority lien upon and security interest in the debtor?s collateral.